US LNG exports to Asia increased in April due to Middle East conflict that curtailed supplies
The U.S. exported liquefied gas to Asia in April. American producers helped?offset the reduced supply from Middle Eastern 'exporters' as the Iran War curtailed production in the region.
Nearly one-quarter of U.S. exports of LNG went to Asia in the last month. This is a significant increase from the time the conflict started late February. It also highlights the U.S.'s growing role as a pivot supplier amid high prices and the strained global gas flows.
The data shows that since U.S.-Israeli strikes on Iran in February, shipments to Asia have increased by more than 175%. They went from 970,000 metric tonnes in February to 1,99 million metric ton (MT) in march and 2,71 MT in april.
Asian spot LNG prices remain high. Japan Korea Marker benchmark was $17.92 for a million British thermal unit (mmBtu), down from $18.27 per mmBtu per month in March, but still 17% higher than Europe's TTF benchmark of $15.34 in April.
LSEG data show that the increase in U.S. shipments 'to Asia' came despite a drop in overall LNG exports from a record-high in March. The total fell to 10.97 MT from 11.7 MT, LSEG showed.
This decline is mainly due to the fact that April has one less day than March, and there were delays in loading cargo. According to LSEG, gas flows to U.S. export LNG plants reached a new record of 18.8 billion cubic foot per day in April. This is up from the previous peak (18.7 bcfd) set in February.
In April, the U.S. exported its first LNG cargo from the Golden Pass terminal. The cargo was sent to Belgium. Golden Pass, a joint venture of QatarEnergy & Exxon Mobil, drew a little under 300 million cubic feet per day during the month. However, it only exported one cargo. This may have contributed towards the gap between the record feedgas demands and the lower LNG exports.
According to data, Europe was the number one destination for U.S. LNG exports. It received 6.14 MT or just under 56% of the April exports. Egypt, too, was a major buyer of U.S. gas, with 710,000 metric tonnes imported during the month. This is more than the 500,000 metric tons that were shipped to Latin America.
One cargo was delivered to South Africa - a destination that is rare for U.S. LNG. Ship-tracking data revealed that nine LNG vessels, which left U.S. ports during April, were still looking for buyers. Two of them were anchored near Suez Canal. Curtis Williams, Houston; Nathan Crooks & Nia Williams edited the story.
(source: Reuters)
