UPDATE 2-Argentina reworks LNG import deals as mild weather hits demand
(Adds Enarsa comment)
By Oleg Vukmanovic and Hugh Bronstein
MILAN/BUENOS AIRES, Sept 1 (Reuters) - Argentina is diverting or cancelling incoming shipments of liquefied natural gas (LNG) after mild late winter temperatures curbed fuel demand and forced state-run buyer Enarsa to rework some deals.
South America's biggest LNG importer had launched back-to-back tenders in June and July after a cold start to winter, lining up dozens of cargoes at bargain prices as global output outpaced demand.
But a milder streak in August undercut demand for heating fuel and left Enarsa juggling a supply overhang, the company and trading sources said.
Enarsa said it had cancelled one shipment and delayed three cargoes until next year because of one of the warmest Augusts in a decade.
Stubbornly high stock levels at Argentina's two import terminals, Bahia Blanca and Escobar, also mean there is no storage for more imports.
LNG trade sources who conduct business with Argentina say at least four cargoes destined for Bahia Blanca have been cancelled or rescheduled.
"The Bahia cargoes are being targeted for cancellation because it is more difficult to divert Escobar shipments," one source said. Continuación...