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U.S. consolidates LNG exports with 9.3 MMTPA in August

The United States which used to be export destination for energy commodities from Africa and Middle East is now relentless with pushing its way into export leadership, pumping oil and natural gas into the export market with increasing capacity.

Currently beating Saudi Arabia and Russia to lead crude oil export, the U.S. LNG exports hit a record in September at 9.4 million metric tons, rising from previous record of 9.3 MMT in August, preliminary data from financial firm LSEG showed.

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The rising figures might put the US annual export capacity to new range towards significant 100 MTPA. Nigeria which was once a supplier to the US is currently building capacity by some 8.0 million tons per annum (MMTPA) to 30 MMTPA.

The increase in US LNG export in August, according to data, was fueled by strong sales to Europe and Asia, and came despite unplanned shutdowns at the country’s largest facility, Cheniere Energy’s Sabine Pass plant in Texas, and a planned outage at Berkshire Hathaway’s Cove Point plant, according to LSEG data.

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The U.S. is the world’s largest LNG exporter and the level of its exports can influence global markets.

Europe remains the favored destination for U.S. LNG exports, taking two-thirds of the total at 6.22 million MT. The continent received 6.16 million MT in August, according to the data.

U.S. LNG exports to Asia, meanwhile, stood at 1.63 million MT or just over 17% of the total, compared with 1.47 million MT in August, the data showed.

Much of the rest went to Latin America and North Africa.

In September, gas traded at $11.13 per million British thermal units (mmBtu) at the European benchmark Dutch Title Transfer Facility, and $11.32 at the Japan Korea Marker JKMc1 benchmark in Asia.

That suggested little or no incentive for U.S. LNG exporters to shift from selling to the distant Asian market to the closer European market.

U.S. LNG exports to Latin America fell in September to 0.63 million MT from 0.69 million MT in August, as the South American continent exited the Southern Hemisphere winter, according to the LSEG ship tracking data.

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Egypt, meanwhile, bought seven cargoes for a total of 0.5 million MT in September, slightly lower than the nine cargoes it bought in August totaling 0.57 million MT, the data showed.

Egypt has been facing falling natural gas production, and the country announced in June it would ramp up LNG imports to meet power demand.

There were also five vessels that left U.S. LNG export plants in September, carrying 0.4 million MT, that were signaling that they were still available for orders.

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