In June, US exports of liquefied natural gas (LNG) fell to the lowest they’ve been in four months after the country’s second-largest LNG plant, Freeport LNG, was shut following an explosion, data from Refinitiv Eikon showed.
LNG shipments from the United States to Europe had rocketed before the June 8 blast, which knocked out Freeport LNG. The plant had been exporting about 1.9 billion cubic feet per day. Partial operations could resume in October.
A total of 90 LNG tankers departed from US ports last month carrying 6.42 million tons, 11 percent below the prior month’s 7.24 million tons, according to preliminary data based on vessel flows.
Europe once again was the main destination with 61 percent of cargo heading in that direction, followed by Asia with 24 percent of shipments. Exports to Latin America and the Caribbean continued to gain, boosted by Brazil and Argentina, as the Southern Hemisphere’s winter increased demand.
In June, at least six tankers that were to load at Freeport LNG in Quintana, Texas, were diverted to other US and Caribbean terminals.
The US pipeline regulator has said that Freeport LNG will not be allowed to repair or restart operations until it addresses risks to public safety.
The outage has exacerbated global LNG shortages amid reduced gas flows from Russia, while weighing heavily on US natural gas prices.
On Friday July 1, ahead of the long three-day US July 4 holiday, US gas futures jumped about eight percent due to a technical bounce and forecasts of hotter weather that will push demand up over the following two weeks.
Lu Ming Pang, Rystad Energy’s analyst, said in a note to clients this week that the lower LNG exports are also allowing US utilities to boost gas storage ahead of the winter.
Current US storage levels are 12.3 percent lower than July 2021 and 13.2 percent below the five-year average, according to Rystad’s figures.
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