The prospects for short-haul LNG cargoes from the US West Coast to Asia remain dim as another export projects stops and another project faces a roadblock.

Backers of the $6bn Oregon LNG project on Monday asked officials in that state to stop processing its permits. The project would have exported some 9.6 million tonnes per annum (mtpa) of LNG from the US Pacific Northwest to markets in Asia.

The project backer’s, New York-listed conglomerate Leucadia National, declined to state why the project was halted. Leucadia has recorded $28.7m in losses for the last two years due to development costs for the project, which also faced major local opposition.

Separately, development of another Oregon-based project, Jordan Cove LNG, has slowed as federal regulators in March denied permits to the projects backers, Toronto-listed gas producer Veresen and New York-listed energy firm Williams, due to a lack of commercial support for the project.

Veresen and Williams have shot back at regulators by signing preliminary agreements for the offtake of some 3 mtpa by Japanese trading firms Itochu and Jera, the joint venture of Japan’s two largest electric utilities. Veresen and Williams say they will appeal the regulator’s decision.

LNG from the US West Coast, as well as the many cancelled Canadian LNG projects, offered mixed prospects for LNG carriers as more volumes would have been offset by shorter voyage distances. LNG cargoes from the North American West Coast would have been able to reach Asia buyers in eight to 11 days, as opposed to the 32-day voyage of an LNG carrier from the US Gulf Coast to Asia around Africa.

But the pending debut of a wider Panama Canal will allow more LNG cargoes from the US Gulf to reach Asia more quickly, with a 22 day transit expected, according to industry estimates. Japan’s largest gas utility, Tokyo Gas, said it would start taking in cargoes from Cheniere Energy’s Sabine Pass LNG project in the US Gulf Coast by next year.

In addition, the Pacific Basin faces a surplus of LNG as massive projects such as Gorgon LNG in Australia come online. Singapore spot LNG prices hit a 16-month low of $3.90 per million British thermal unit, according to Arctic Securities.