Peru May Add To Spot Market Surplus

摘要

Peru may start selling more LNG on the spot market, competing head-on with new supply from the US, following cutbacks in purchases by key customers including Mexico and Spain in 2015. Exports from the 4.4 million ton per year Peru LNG plant fell 12% last year to around 3.3 million tons from 3.7 million tons in 2014, according to state energy regulator PeruPetro. Nearly 70% of the exports went to Mexico, imported via the Manzanillo terminal in the southwest under a long-term contract with Royal Dutch Shell. But Mexico increasingly plans to meet surging gas demand through cheaper pipeline imports from the US. Around 6.8 billion cubic feet per day (70 billion cubic meters per year) of cross-border pipeline capacity should be operational this year, and this is expected to jump to 10.7 Bcf/d by 2017.