Maintenance at some LNG export facilities last month drove U.S. exports of the commodity lower—to the second-lowest monthly, according to data from LSEG cited by Reuters.
The June total stood at 8.4 million tons of liquefied gas last month, which was down from 8.9 million tons in May and from 9.3 million tons for April. The April total was an all-time high.
June saw regularly scheduled maintenance at Cheniere’s two LNG export facilities, in Sabine Pass and Corpus Christi, which have a combined daily capacity of 6.9 billion cu ft of natural gas. The Cameron LNG plant in Louisiana also underwent maintenance in June, which affected export flows.
With regard to destinations, Europe remained the top buyer of U.S. liquefied gas, while Asia reduced its purchases over the first half of the year on higher prices and, according to Reuters, slower economic growth due to the tariff wars ignited by President Trump. Asian LNG imports were down by 16 million tons between January and June, according to the LSEG figures. A rise in LNG prices as Eurpe entered storage refill season also affected demand in Asia.
Europe, on the other hand, kept buying U.S. LNG regardless of price because it must fill that storage. In June, Europe took in 66% of all U.S. exports of liquefied natural gas, or a total of 5.53 million tons. That was down from 6.05 million tons imported in May.
Going forward, there will likely be even more U.S. LNG for Europe as LNG Canada joins the market with its first cargo, which shipped this week. Canada offers an alternative supply source for Asian buyers, made attractive by the lower gas prices in Canada, as noted by Shell’s CEO earlier this year. Shell is the lead partner in LNG Canada—the country’s first export terminal for the fuel.
By Irina Slav for Oilprice.com
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