U.S. LNG exports rise to 10.7 million tons in August

en.Wedoany.com Reported - U.S. liquefied natural gas (LNG) exports edged higher in August, driven by the completion of maintenance at a Texas export plant and increased purchases by European buyers restocking for winter.

Preliminary vessel tracking data from financial firm LSEG showed the U.S. exported 10.7 million metric tons of LNG in August, up from 10.48 million metric tons in July. Freeport LNG completed maintenance at its Texas facility, the fourth-largest LNG export plant in the U.S. Cheniere Energy completed planned maintenance at its Corpus Christi plant, the third-largest LNG export facility in the U.S.

Europe remained the largest destination for U.S. LNG cargoes, importing 5.84 million metric tons in August, accounting for 55% of total U.S. exports, up more than 1 million metric tons from July. Buyers sought to lock in supply and replenish inventories ahead of the winter heating season.

With stronger European demand, the premium of Asian LNG over European gas benchmarks narrowed. The Asian benchmark Japan-Korea Marker averaged $22.00 per million British thermal units (mmBtu) in August, up from $19.10 in July; the Dutch Title Transfer Facility benchmark averaged $21.17 per mmBtu in August, up from $18.07 in July.

Asia remained the second-largest market for U.S. LNG exports, importing 2.59 million metric tons in August, down from 3.32 million metric tons in July, as European buyers competed more aggressively for available cargoes.

Executives from Cheniere Energy and Venture Global, the two largest U.S. LNG exporters, said on second-quarter earnings calls that they expect LNG demand and prices to remain strong through the end of the year, as Europe continues to rebuild inventories and colder weather boosts consumption.

Europe's inventory rebuilding process has been complicated by the ongoing conflict between the U.S. and Iran, which has restricted shipments of the super-chilled gas through the Strait of Hormuz.

U.S. exports to Latin America rose to 900,000 metric tons in August, driven mainly by higher winter demand in parts of South America. Cargoes included two LNG shipments to El Salvador (a country the U.S. rarely supplies with LNG) and one cargo from Venture Global's Plaquemines LNG plant in Louisiana to Trinidad and Tobago.

The shipment to Trinidad was unusual, as Trinidad and Tobago is Latin America's largest LNG exporter and typically not an importer. The country exported 830,000 metric tons of LNG in August, with six of its twelve cargoes going to Europe, as local producers also sought to capitalize on strong European market demand.

According to LSEG data, Egypt remained a significant buyer of U.S. LNG in August, importing 610,000 metric tons, accounting for 6% of total U.S. LNG exports, roughly in line with July import volumes.

An additional approximately 760,000 metric tons (7% of exports) remained at sea with no publicly identified final destination, indicating traders were still seeking the most profitable markets for these cargoes.