Supply & Demand

LNG over-commitment haunts Argentina

Argentina is struggling to fulfil its LNG import commitments as a result of weakening gas demand and rising domestic output of the fuel Argentina is struggling to fulfil its LNG import commitments as a result of weakening gas demand and rising domestic output of the fuel.
By Abhishek Kumar 25 August 2016 0 24429

Market impact:
Bearish on Latin American spot LNG prices

Argentina has overestimated its need for LNG and is looking to cancel, divert or postpone some of its commitments. Growing domestic gas production, combined with the government’s plan to rein in energy subsidies, will further dampen the country’s reliance on LNG imports in the coming years.

Argentina is already struggling to meet its import obligations for August as it leaves the peak winter  demand season. The country is scheduled to receive 13 shipments this month, but...