Suppliers of LNG from the US Gulf Coast may have to get used to taking longer shipping routes to Asia that avoid the Panama Canal. Although the drought that has caused congestion at the canal in recent months is expected to ease later this year, a new reservoir to supply it with more water faces political hurdles and could take around five years to develop. In the meantime, the scale of the US liquefaction buildout will likely lead to more LNG cargoes lining up on their way to Asia than this key waterway can handle, industry sources tell LNG Business Review.
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