Throughout September, over half of U.S. LNG exports found their way to Europe, accounting for 52% of total shipments – mirroring August’s distribution.
In September, US liquefied natural gas (LNG) exports experienced a slight decline compared to August, attributed to sporadic outages at four gas-processing facilities, according to vessel tracking data from LSEG. The total volume of superchilled gas leaving U.S. ports dropped from 7.32 million metric tons in August to 7.12 million metric tons last month.
Throughout September, over half of U.S. LNG exports found their way to Europe, accounting for 52% of total shipments – mirroring August’s distribution. Meanwhile, Asia received 30% of the cargoes, maintaining a similar share to the previous month.
Europe’s heightened interest in U.S. gas comes as a response to Russia’s incursion into Ukraine, leading to reduced pipeline supplies and a reluctance to rely on Russian energy exports.
Latin American markets saw a slight uptick in U.S. LNG purchases, claiming 8% of the exports in September, up from 7% in August. This increase was primarily driven by greater procurement from Colombia, as per preliminary data.
Recent reports from the U.S. Energy Information Administration indicate that in the first half of this year, the U.S. reclaimed its position as the world’s leading LNG exporter, surpassing Australia and Qatar.
In September, fewer vessel operators opted for the Panama Canal route to reach Asian customers, choosing instead to take longer routes around South Africa or transit through the Suez Canal.
Maintenance-related outages at Freeport LNG, Cheniere Energy’s Sabine Pass and Corpus Christi plants, and Berkshire Hathaway Energy’s Cove Point export facility led to decreased sales. Freeport LNG, the second-largest U.S. LNG exporter, experienced nearly a week of downtime, while Cheniere’s Corpus Christi operated at reduced capacity for four days.
The largest U.S. LNG facility, Sabine Pass, also operated at reduced capacity for a day. Ongoing maintenance at Berkshire Hathaway Energy’s Cove Point in Maryland further impacted LNG exports in September.
Despite the drop in exports, gas flows to the seven largest U.S. LNG export plants increased to an average of 12.6 billion cubic feet per day (bcfd) in September, up from 12.3 bcfd in August. This, however, falls short of the monthly record of 14 bcfd set in April.
U.S. spot prices remained steady in September, with the Henry Hub benchmark averaging $2.64 per million British thermal units (mmBtu), compared to $2.58 per mmBtu in August.
Asian prices have shown signs of an upturn due to tightening supply in Europe and heightened demand in Asia, noted consulting firm Rystad Energy in its September market update. China, in particular, has steadily increased its imports of LNG and coal throughout the year, buoyed by positive industrial production figures in August, challenging previous bearish economic projections.