US LNG exports will decrease in June due to plant maintenance
Curtis Williams
Houston (Reuters) – US liquefied natural gas exports fell to the second-lowest monthly level in June, according to preliminary data from financial company LSEG.
The US, the world’s top LNG exporter, sold 8.4 million tonnes of super chilled gas that month, down from 8.9 MT in May, significantly below April’s 9.3 MT, LSEG data show.
The cuts in LNG exports were primarily due to seasonal maintenance, including Louisiana’s 4.5 billion cubic feet per day Savinpass facility and Texas’ 2.4 BCFD Corpus Christi plant.
According to LSEG data, the 2.0 BCFD plant at Cameron LNG in Louisiana was also undergoing maintenance, with an unscheduled unit outage at the 2.1-BCFD plant at Freeport LNG in Texas.
According to LSEG data, maintenance on both Sabine Pass and Cameron LNG appeared to have finished by the last week of June.
Europe controls purchases
Reuters data shows that Asia’s economic growth slows due to the ongoing trade war with the US continues to affect LNG demand.
In June, Asian benchmark Japanese Korean markers rose to $12.90 per MMBTU from $11.83 in May, with Asian benchmark Japanese Korean markers slightly higher. This rose from $11.68 in May to $12.38 per MMBTU in June, compared to the Benchmark Title Transfer facility in the Netherlands.
Even with a small ruling in favour of Asian exports, US producers exported 5.53 MT or 66% of LNG to Europe in June.
According to LSEG data, exports to Asia remained relatively low, either 1.56 mt or 19% or 19% sold to that region of the world in June, sold to that region of the world.
One of LNG Canada’s 14 MTPA plants exports its first freight on the last day of June, so the short voyage times to Asia could compete favorably with LNG exports from the Gulf Coast.
The US is exporting more LNG closer to homes
With cold weather in some South American countries and sufficient domestic gas in Argentina, the US has stepped up exports to Latin America with 0.81 mt or 10% of all cargo going to this region. This compares to just over 0.66 MT or 7% in May, LSEG data shows.
According to LSEG data, only Argentina purchased a total of 340,000 tons of LNG in June, with the US supplying a third of that, while Trinidad and Tobago supplying 230,000 tons.