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Suppliers Cancel Term Cargoes to Capture Spot Prices

LNG

High LNG spot prices are leading to the cancelation of long term contract cargo deliveries.

  • LNG suppliers are paying penalty fees and cancelling cargoes under lower priced long term contracts to capture high spot delivery prices.
  • An Indian government official has reported that suppliers are paying fees of 20% of the value of the contractual shipment to cancel cargoes forcing India to pay for higher priced supply on the spot market.
  • Pakistan has also seen some supplies cancelled.

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