US LNG exports hit a record high in November due to cooler weather and strong production
U.S. exports of liquefied natural gas hit a monthly high in November for the second month in a row, driven by cooler weather and strong production from the country’s two largest producers, preliminary data from financial firm LSEG showed on Monday.
The US, the world’s largest LNG exporter, shipped 10.9 million metric tons last month, up from 10.1 million tons in October despite having one fewer day in the month, according to LSEG data.
Cheniere Energy LNG, the largest US LNG exporter, increased shipments to 4.6 million tons from its two plants in Texas, compared with 4.1 million tons in October. Venture Global LNG VG, the second-largest exporter, remained steady at 3 million tonnes in November, according to LSEG ship tracking data.
LNG plants typically operate more efficiently in cooler conditions. Average temperatures along the Gulf Coast are about 8 degrees Fahrenheit lower in November than in October, according to the U.S. National Weather Service.
A surge in LNG exports pushed U.S. demand for natural gas for liquefaction to a record 18 billion cubic feet per day in November. Daily demand reached 19 bcfd for the first time last week. Henry Hub gas prices averaged $4.47 per mmBtu in November, up from $3.36 in October.
EUROPE REMAINS MAIN MARKET
Europe received 70% of US LNG exports in November, or 7.5 million tonnes, up from 69% in October. Türkiye emerged as the main buyer, receiving 12 cargoes totaling 0.9 million tonnes, compared with just one cargo in October.
Exports to Asia fell to 1.75 million tonnes, or 16% of the total, from 1.96 million tonnes in October, as spot demand in Northeast Asia remained weak. Latin America received 0.66 million tonnes, slightly more than in October, while Egypt bought 0.84 million tonnes amid domestic supply challenges.
The benchmark Dutch Title Transfer Facility price in Europe averaged $10.40 per million British thermal units in November, down from $10.88 in October. Japan Korea Marker averaged $11.25, up from $11.11.
“Arbitration opportunities for US LNG cargoes to Asia via the Cape of Good Hope remain closed, which would result in an influx of US flexible cargoes to Northwest Europe,” LSEG said in a note.
Source: Reuters
