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US LNG exports surged in July, LSEG Data show

The preliminary data of financial firm LSEG shows that exports of U.S. liquefied gas (LNG), which is also known as liquefied petroleum gas, jumped from 6.9 million metric tones (MT) to 9.1 millions metric tons (MT) during July. This was a significant increase compared with June, when some plants completed maintenance and Venture Global’s Plaquemines plant ramped up its production.

The U.S. exports the most LNG in the world, and its July output was its third-highest ever. According to LSEG, the U.S. saw three of its highest monthly LNG production numbers ever this year.

Freeport LNG's third-largest export facility could have had higher U.S. LNG shipment numbers if it hadn't experienced several unplanned power outages. It reported seven power outages to the Texas Commission on Environmental Quality in July. LSEG data revealed that its output in July fell to 1.3 metric tons from 1.4 MT the previous month.

Based on projects that are already under construction, the U.S. may double its LNG export capability by 2030. The industry is expected to gain momentum as a result of President Donald Trump's pledge to boost the energy industry in the U.S. Venture Global announced this week that it had made a final investment decision in Louisiana for its 28 million metric ton per year (mtpa), CP2 facility.

LSEG data show that in July Plaquemines in Louisiana exported 1.4 MT super-chilled natural gas, compared with 1.2 MT exports in June. This helped the U.S. reach 9.1 MT, compared with 8.4 MT during June.

GAS PRICES DROP IN EUROPE AND ASIA

According to LSEG, European gas prices dropped in July from $12.38 to $11.56 per million British Thermal Unit (mmBtu), compared to the European benchmark Title Transfer Facility located in the Netherlands.

Despite the lower prices, U.S. exports of LNG to Europe remained strong. LSEG data shows that 5.25 MT or 58% of the total July LNG exports went to Europe in July. This is slightly less than the 5.53 MT or 66% sold in June.

U.S. exports could increase to Europe in the next few years, following a recent trade agreement in which the European Union committed to buying $750 billion worth of U.S. Energy over a period of five years.

Gas prices in Asia were also lower than in the United States in July. The benchmark Japan Korea Marker dropped to $12.18 from $12.90 in June.

LSEG data shows that exports to Asia increased slightly in July to 1.8 MT (20%) of U.S. Liquefied Natural Gas (LNG) exports, compared with 1.56 MT (19%) in June, as the demand for energy to cool grew.

In a report released on Wednesday, Morgan Stanley bankers told their clients that the hotter weather in July had led to an improvement.

US SELLS MORE LNG CLOSE TO HOME

The U.S. LNG exported to South America increased in July, as the continent experienced colder than normal weather. The U.S. exported 1,03 MT or 11% its total LNG to Latin America. Cargoes were sent to Brazil, Argentina Colombia and Chile. Cargoes have also been sold to Caribbean countries including Jamaica, Puerto Rico, and the Dominican Republic.

Egypt imported eight cargoes of U.S. supercooled gas in July. This totaled.59 MT. Six cargoes containing.43 MT LNG left U.S. port in July without a clear destination. This meant they were still available for order.

The first LNG was shipped from Canada's major LNG plant in Kitimat (British Columbia) on July 1. This is the first North American facility with direct access the Pacific Ocean, and shorter sailing times to Asia.

According to LSEG ship tracking, LNG Canada exported four shipments, or.29 MT, of LNG during July. Reporting by Curtis Williams, Houston; Editing and proofreading by Liz Hampton and Andrea Ricci

(source: Reuters)