Cheniere shunning Panama Canal for longer LNG routes to Asia – Reuters

Cheniere shunning Panama Canal for longer LNG routes to Asia – Reuters

VANCOUVER, July 10 (Reuters) - Top U.S. LNG exporter Cheniere Energy (LNG.A) is shunning the Panama Canal to transport liquefied natural gas to Asia because the market is not supporting use of the waterway, said Chief Operating Officer Corey Grindal on Monday.

The Panama Canal historically has been used by U.S Gulf Coast LNG exporters to send LNG to Asian customers via the Pacific Ocean. But a months-long drought has led to delays and depth restrictions for the largest ships accessing the canal.

"We use the canal when it is economical to do so, right now it is not. Right now the market in the Far East is not supporting it, and the waiting time, with us not being a priority customer, is just not worth us using it right now," Grindal said in a media briefing at an LNG conference.