Argentina has been actively seeking deferral of LNG cargoes recently as warmer-than-average temperatures in the capital city of Buenos Aires have reduced domestic demand for natural gas.
While Enarsa has reportedly contacted several of its LNG suppliers in an attempt to defer the arrival of cargoes delivering during the fourth quarter, delays in current deliveries have also been seen. Vessels in queue include the 161,337 cubic meter Lobito, which has been off the coast of Bahia Blanca for more than 12 days.
"Argentina's sendout rate is below 30% capacity right now," one South American market source said. "The regas terminals at Escobar and Bahia Blanca are each capable of sending out up to 17 million cu m/day of gas. Currently, the two terminals combined are sending out less than 10 million cu m/d."
Lower sendout rates come as Buenos Aires, where roughly one-third of Argentina's population resides, experiences higher-than-average temperatures. During September the average high temperature in the capital city has been 20.5 degrees Celsius (69 degrees Fahrenheit), compared to an average high of 17.7 degrees, according to data from AccuWeather.
"The delays seem to be due to low demand, and it looks like they are trying to slow discharge," one trading source in Europe said. "They attempted to defer a few cargoes last year when demand was low, and it could happen again."
In July and August imports of LNG to Argentina were down by 7% and 19%, respectively, compared with the same period last year, according to data from Platts unit Bentek Energy.
"If low demand is behind the delays and they manage to reschedule their deliveries, we could see Q4 cargoes ending up rolling ahead instead," a trading source in London said. "Which means they may not need to buy until the end of Q1 2015."
