Domestic liquefied natural gas (LNG) cargo cancellations may begin to decline in September as global markets improve, according to Bermuda-based shipper Flex LNG Ltd.

lng export natural gas

“We do see July and August as the peak cancellation months and expect a gradual decrease in cargo cancellation and thus a recovery to some export growth in the fourth quarter,” CEO Oystein Kalleklev said during a second quarter earnings call.

Management expects a “substantial reduction” in U.S. LNG cargo cancellations in the near term to help meet winter demand in the Northern Hemisphere, he added.

About 270 cargoes are expected to be canceled globally this year, Kalleklev said. Unlike most plants around the world, U.S. LNG operators allow long-term customers to cancel cargoes as long as they provide...