US LNG exports record second consecutive month

According to preliminary data, U.S. exports of LNG reached a new record in September, surpassing their previous record set in August at 9.3 million MT.

According to LSEG, the increase was fueled primarily by sales to Europe, Asia and other parts of the world. This occurred despite unexpected shutdowns at Cheniere Energy’s Sabine Pass facility in Texas and a planned maintenance at Berkshire Hathaway’s Cove Point Plant.

The U.S. exports the most LNG in the world, and its level can have a significant impact on global markets.

Europe continues to be the top destination for U.S. exports of LNG, accounting for two-thirds (6.22 million MT) of the total. According to data, the continent received 6,16 million MT of LNG in August.

The data revealed that U.S. exports of LNG to Asia were 1.63 million MT, or slightly more than 17%, as compared to 1.47 millionMT in August.

Most of the remainder went to Latin America, North Africa and Europe.

Gas traded in September at a benchmark price of $11.13 per million British Thermal Units (mmBtu), at the Dutch Title Transfer Facility benchmark for Europe, and $11.32 on the Japan Korea Marker benchmark for Asia.

This suggests that U.S. LNG producers have little incentive to switch from the far-away Asian market to the more local European market.

According to LSEG ship tracking, U.S. exports of LNG to Latin America dropped to 0.63 million MT, from 0.69 in August. This was due to South America exiting the Southern Hemisphere Winter.

Egypt bought seven cargoes totaling 0.5 million MT for September. This is slightly less than the nine cargoes totaling 0.57 millions MT it purchased in August, according to the data.

Egypt's natural gas production has fallen, and in June the country announced that it would increase LNG imports to meet its power needs.

Five vessels, each carrying 0.4 MT of LNG, left U.S. export plants in September. They were showing that they are still available to take orders. Curtis Williams, Houston reporter; Cynthia Osterman, editor

(source: Reuters)