Plunging LNG Prices Have Traders Bracing for US Export Cancellations
- LNG prices would need to fall below $5/MMBtu, traders said
- Maintenance and output cuts at global plants are also possible
A person checks valves at the Freeport LNG facility in Quintana, Texas.
Photographer: Craig Hartley/Bloomberg
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As global liquefied natural gas prices nosedive, traders are bracing for the possibility that US cargoes will be canceled in the coming months.
Asian LNG spot prices are down more than 85% from last year’s record highs, falling to lows not seen since May 2021. European gas prices have slumped 70% over the past year. Traders gathered at an annual energy fair in Essen, Germany, this week debated whether slumping prices and lackluster demand could trigger a supply-side response.