US LNG output dips in June on shorter month, plant maintenance

CKX Lands

08/07/2024 16:30

By Curtis Williams
       HOUSTON, July 8 (Reuters) - U.S exports of liquefied
natural gas (LNG) fell slightly in June to 7.11 million metric
tons (MT) from 7.60 MT in May, as several plants embarked on
maintenance activity, preliminary data from LSEG showed.
    U.S exporters boosted exports to Asia, where prices were
higher, putting shipments of the super-chilled gas to that
continent at parity with Europe. 
    The U.S. is the world's largest exporter of LNG and a key
supplier to Europe since Russia's invasion of Ukraine, but
overall exports declined for four consecutive months this year,
according to LSEG data. 
    They rebounded in May before falling again in June, the LSEG
data showed.
    Several U.S. LNG plants, including Freeport LNG and Cheniere
Energy's  LNG.N  Corpus Christi facility, as well as pipelines,
underwent maintenance in June, prompting a drop in supplies.
    Cameron LNG, Cheniere's Sabine Pass and Venture Global's
Calcasieu Pass in Louisiana were also undergoing work. 
        The outages hit demand for natural gas to feed LNG
plants, with June gas flows at 12.3 billion cubic feet per day
(bcfpd), or 84% of estimated utilization capacity, analysts for
financial firm Tudor, Pickering, Holt & Co wrote in a note last
week. 
  
    "Multiple LNG projects saw decreases in flows with notable
ones being Calcasieu Pass (-150mmcf), Sabine Pass (-160mmcf) and
Cameron (-100mmcf)," TPH analysts wrote.
    A slightly larger share of US LNG exports went to Asia in
June compared to May. Some 2.98 MT, or 42% of June exports, went
to Asia, compared to 41% of total US exports in May, the LSEG
data showed.
    "Asia remains the preferred destination for US free-on-board
(FOB) LNG cargoes as the arbitrage remains open in June for
August and September delivery," said Rystad Energy's senior
analyst, Masanori Odaka in an update to client late last month.
    Most of the US exports to Asia continued to take the longer
route past the Cape of Good Hope. Yet there was least one
shipment that went to Asia via the Suez Canal, LSEG ship
tracking data showed. 
    Europe, a top destination for US LNG exports, took 2.99 MT,
or 42%, of total June exports, in line with levels from the
previous month, according to LSEG data.
    US exports to Latin America held steady at 870,000 MT, or
just over 12% of total exports. The Middle East took three
cargoes carrying 210,000 tons of LNG in total, LSEG data showed.

 (Reporting by Curtis Williams in Houston; Editing by Liz
Hampton and David Gregorio)
 ((Curtis.Williams@thomsonreuters.com; +1 346 324 7560;))