Manzanillo – a glimmer of hope for LNG suppliers?
The Manzanillo LNG terminal in Mexico is attracting shipments from various sources, but its medium-to-long-term prospects remain weak. (Samsung C&T;)
Market impact:
Bullish on LNG prices in the near term
The Manzanillo LNG terminal on Mexico’s Pacific coast is showing healthy demand, unlike most other terminals in Latin America. This has attracted cargoes from as far afield as Australia and Nigeria, presenting a challenge to traditional suppliers such as Trinidad & Tobago and Peru. The recent expansion of the Panama Canal has also paved the way for LNG from the United States to reach the terminal. Nonetheless, the prospects for Manzanillo’s LNG imports remain weak in the medium-to-long term because of the growing popularity of US pipeline gas.