Reuters: Asian buyers of U.S. LNG dial back as exuberance dims

A looming gas glut worldwide is prompting Japanese and Indian firms to resell to European traders and utilities big chunks of U.S. liquefied natural gas they had committed to buy several years ago, signalling tempered enthusiasm for U.S. energy.

The chance to ship LNG from the United States, where natural gas output is booming, was touted as the solution to Asia's soaring energy needs and mounting fuel import bill -- and firms rushed in to grab a slice of the affordable action.

But after splashing out billions of dollars to build numerous plants to liquefy and export the gas by ship, at least three buyers spooked by the scale of their commitments and risks of heavy financial losses want out, in part.

Moves to sell off supply are likely to boost global spot market liquidity as trading houses vie for the business and challenge the historical dominance of the oil majors.

Japanese utilities Tokyo Gas and Osaka Gas as well as India's Gail are dialling back on their U.S. LNG commitments via stake sales after realising they cannot handle the initial surge of volume due to low demand at home. MORE