North America gas weekly update: US LNG cargoes cancelled

Several years ago, it was much forecasted, and then it melted away into nothing. Now, the specter is back: US LNG cargoes have been cancelled. It remains unclear if others won’t pick them up, but the sentiment, along with warmer short-term forecasts, has pushed Henry Hub back under the $2.00/mmbtu threshold once again. US production continued its decline, more pipeline gas was exported to Mexico, and LNG feed gas deliveries continued at their height last week, keeping US markets still in undersupplied territory. Production needs to continue to decline, and high power burns need to continue, before we will see a Henry Hub recovery.