HomeNewsU.S. LNG output dips in June on shorter month, plant maintenance

U.S. LNG output dips in June on shorter month, plant maintenance

7/8/2024

U.S exports of liquefied natural gas (LNG) fell slightly in June to 7.11 metric MMt from 7.60 metric MMt in May, as several plants embarked on maintenance activity, preliminary data from LSEG showed.

U.S exporters boosted exports to Asia, where prices were higher, putting shipments of the super-chilled gas to that continent at parity with Europe.

The U.S. is the world's largest exporter of LNG and a key supplier to Europe since Russia's invasion of Ukraine, but overall exports declined for four consecutive months this year, according to LSEG data. They rebounded in May before falling again in June, the LSEG data showed.

Several U.S. LNG plants, including Freeport LNG and Cheniere Energy's Corpus Christi facility, as well as pipelines, underwent maintenance in June, prompting a drop in supplies. Cameron LNG, Cheniere's Sabine Pass and Venture Global's Calcasieu Pass in Louisiana were also undergoing work.

The outages hit demand for natural gas to feed LNG plants, with June gas flows at 12.3 Bft3d, or 84% of estimated utilization capacity, analysts for financial firm Tudor, Pickering, Holt & Co wrote in a note last week.

"Multiple LNG projects saw decreases in flows with notable ones being Calcasieu Pass (–150 MMft3), Sabine Pass (–160 MMft3) and Cameron (–100 MMft3)," TPH analysts wrote.

A slightly larger share of US LNG exports went to Asia in June compared to May. Some 2.98 metric MMt, or 42% of June exports, went to Asia, compared to 41% of total U.S. exports in May, the LSEG data showed.

"Asia remains the preferred destination for U.S. free-on-board (FOB) LNG cargoes as the arbitrage remains open in June for August and September delivery," said Rystad Energy's senior analyst, Masanori Odaka in an update to client late last month.

Most of the U.S. exports to Asia continued to take the longer route past the Cape of Good Hope. Yet there was least one shipment that went to Asia via the Suez Canal, LSEG ship tracking data showed.

Europe, a top destination for US LNG exports, took 2.99 metric MMt, or 42%, of total June exports, in line with levels from the previous month, according to LSEG data.

U.S. exports to Latin America held steady at 870,000 metric t, or just over 12% of total exports. The Middle East took three cargoes carrying 210,000 t of LNG in total, LSEG data showed.

 

 

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