U.S. LNG exports decrease, Europe remains top destination

CKX Lands

02/05/2022 23:22

By Marcy de Luna
    HOUSTON, May 2 (Reuters) - U.S. exports of liquefied natural
gas (LNG) fell about 8% last month, according to preliminary
Refinitiv vessel tracking data on Monday, but Europe remained
the top importer as the continent secures alternate supply
following Russia's invasion of Ukraine.
    U.S. LNG exports to all destinations came to about 7.10
million tonnes (MT) last month, according to Refinitiv, down
from a record high 7.67 MT in March.
    Europe was the top importer of U.S. LNG for a fifth straight
month, taking about 64% of U.S. exports, according to the data.
European countries are slashing gas imports from Russia after
its invasion of Ukraine. Moscow has threatened to cut supply to
"unfriendly nations," and even cut flow to Bulgaria and Poland
last week.  urn:newsml:reuters.com:*:nL2N2WU0NT
    "Europe remains the dominant buyer of U.S. volumes," said
Reid I'Anson, senior commodity analyst at Kpler. "That seems to
be continuing into the shoulder months."
    The drop in U.S. exports stems mainly from planned
maintenance at U.S. LNG plants, experts said, which reduces
available liquefaction capacity, though exports still exceeded
expectations. 
    Eventually, operators will have to conduct maintenance or
risk operational troubles during peak winter demand.
    "The longer and harder these facilities run, which they have
been for the last year, the more likely you're going to have
issues pop up," said Ross Wyeno, lead analyst of Americas LNG
Analytics at S&P Global Commodity Insights.
    Last month, U.S. energy company Sempra Energy's  SRE.N 
Cameron LNG plant in Louisiana began a three-week maintenance
period on a liquefaction train, while Freeport LNG had an 18-day
maintenance period, according to S&P. 
    The United States is producing more LNG year-over-year
because of additional capacity from Venture Global's new
Calcasieu Pass LNG export terminal in Cameron Parish, Louisiana,
as it ramps up. 
    Cheniere Energy Inc's  LNG.A  Sabine Pass facility in
Louisiana now has a sixth liquefaction train operating. The U.S.
Energy Department last month approved Cheniere to export more
LNG from its Sabine Pass and Corpus Christi, Texas, terminals.
 urn:newsml:reuters.com:*:nL2N2VJ3AD
    About 13% of exports went to Asia and 2% to Latin America,
data showed. About 21 vessels responsible for 21% of volumes had
not signaled a destination. 
    Global prices have tapered off in recent weeks. The European
LNG benchmark  TRNLTTFWKD  this week traded at $30 per million
British thermal units (mmBtu), according to Refinitiv, compared
with $39.22 per mmBtu for the same week in March.
    Asia spot gas this week traded at $23.50 per mmBtu  LNG-AS ,
down from $35.00 per mmBtu in March. 
    
    
     


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 (Reporting by Marcy de Luna in Houston
Editing by Matthew Lewis)
 ((marcy.deluna@thomsonreuters.com; Reuters Messaging:
@marcydeluna))