Latest News

US LNG exports reach record high in November due to cooler weather and strong output

The preliminary data released by financial firm LSEG on Monday showed that U.S. liquefied gas exports reached a record high for the second consecutive month in November, thanks to cooler weather conditions and robust production from the two biggest producers of the country. According to LSEG, the U.S. is the top LNG exporter in the world. It shipped 10.9 million metric tons last month. This was up from 10.1 mmt during October, despite the fact that the month had one fewer working day.

Cheniere Energy, U.S.'s largest LNG exporter, increased shipments from its two Texas facilities to 4.6 mmt, up from 4.1 mmt last month. Venture Global LNG (the second largest exporter) remained at 3 mmt for the month of November, according to LSEG ship tracking data.

In cooler temperatures, LNG plants are more efficient. According to the U.S. National Weather Service, the average temperature along the Gulf Coast was about 8 degrees Fahrenheit less in November than it was in October.

In November, the U.S. demand for natural gas liquefaction reached a new record of 18 billion cubic feet per a day due to an increase in LNG exports. Last week, the daily demand exceeded 19 bcfd. Henry Hub gas averaged $4.47/mmBtu per month in November. This is up from $3.36/mmBtu during October.

EUROPE RETAINS A KEY MARKET

Europe received 70% or 7.5 mmt of U.S. gas exports in November. This is up from 69% for October. Turkey became a major purchaser, with 12 cargoes worth 0.9 mmt compared to just one in October.

Exports to Asia dropped to 1.75 million tonnes, or 16 percent of the total volume, down from 1.96 million tonnes in October. This was due to a weakening in demand for goods in Northeast Asia. Latin America received 0.66 million tonnes, slightly more than in October. Egypt purchased 0.84 million tonnes amid domestic supply problems.

In November, the European benchmark Dutch Title Transfer Facility price per million British Thermal Units was $10.40, compared to $10.88 in Oct. Japan Korea Marker prices averaged $11.25, an increase from $11.111.

The arbitrage opportunity to ship U.S. LNG to Asia via Cape of Good Hope is still closed, which will result in a continuing influx of flexible U.S. goods into Northwest Europe," LSEG stated in a report. Curtis Williams, Houston (reporting) and Nathan Crooks & Paul Simao (editing).

(source: Reuters)