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US LNG exports drop in May due to maintenance; Asia's share rises

The preliminary data of financial firm LSEG shows that U.S. liquefied gas exports dropped to 10.2 million metric tonnes (MT) in the month of May, which is the?lowest amount this year excluding January's shorter months, due to seasonal maintenance.

The decline was primarily due to planned outages at several export plants as operators completed spring maintenance, after delaying earlier work in the year.

Cheniere Energy, along with some U.S.-based exporters, had delayed maintenance in March in order to maximize shipments into Asia. This was due to supply disruptions caused by reduced Qatari supplies that resulted in almost 20% loss in global volumes.

Cameron LNG, in Louisiana, reduced its feedgas demand due to annual maintenance of Train 2 and ongoing pipeline work.

Golden Pass LNG, in Texas, saw a near-zero intake of gas for several days as it continued commissioning the plant. Cheniere's Sabine Pass in Louisiana also reported a sharp decline in feedgas flow in mid-May because of maintenance.

Despite lower overall exports, shipments into Asia reached a record high. According to LSEG data, the U.S. shipped 3.68 MT of total shipments to?Asia, which is just under 36%.

The rise was due to a pricing arbitrage. Asia's JKM benchmark traded at a higher price than Europe's TTF.

The Asian spot LNG price fell slightly but remained high in May, with JKM at an average of $17.75 for a million British thermal unit (mmBtu), compared to $17.92 per MMBtu in April. The benchmark was roughly 10% higher than Europe's TTF which averaged $16.11 per million British thermal units (mmBtu) in May, up from $15.34.

Europe was the top destination for U.S. exports of LNG, with 5.13 MT or slightly more than 50%. LSEG ship tracking data shows that this was down from 6,14?MT or almost 56% in April.

According to LSEG data, exports to Latin America reached?600,000.00 tons or?6% of all volumes. This is the highest level seen since the U.S./Israeli war against Iran.

According to LSEG data, exports from the U.S. to?Latin America have decreased since the beginning of the war.

LSEG data shows that Egypt has reduced its monthly purchases to about 300,000 tonnes, or roughly half of its usual 600,000 tonnes.

Two cargoes have been delivered to African countries while just 3% of the?U.S. At the end of last month, LNG cargoes were still on the water. This indicates that spot buyers have access to these cargoes.

Despite lower U.S. output of LNG, preliminary LSEG results show that global LNG exports remained stable in May at 33.8 MT, slightly less than the 33.99 MT exported in April, and down from the 35.66 MT exported in March.

(source: Reuters)