US LNG exports fall due to heat

However, the US's liquefied natural gas (LNG) output is expected to increase again in September.

US LNG exports fell in August as a prolonged heat wave forced domestic LNG power plants to operate at high capacity. (Source: Reuters)

US LNG exports fell in August 2023, according to ship tracking data and analysts. High temperatures and drought hit the US Southwest last month, leading to record electricity demand and forcing suppliers to ask users to voluntarily reduce consumption.

Gas supplies to the seven largest US LNG export facilities fell from 12.7 billion cubic feet per day in July to an average of 12.3 billion cubic feet per day in August, well below the record 14 billion cubic feet per day in April.

According to preliminary data from market tracking platform LSEG Eikon (USA), US natural gas production increased from 102.1 billion cubic feet per day (bcf/d) in July to 102.2 bcf/d last month. However, very high demand from gas-fired power plants, especially in Texas, has reduced the fuel's reserves.

Additionally, maintenance shutdowns have limited LNG processing at Cheniere Energy’s two Louisiana and Texas facilities. Analysts expect the volume of U.S. gas flowing into LNG export plants to rebound in September as the facilities resume normal processing rates.

There were also 102 cargoes departing from US ports last month, carrying 7.32 million tonnes of LNG – slightly lower than the 7.51 million tonnes shipped in July, according to preliminary data from LSEG Eikon.

The main destination for US LNG is Europe, which receives about 52% of US LNG exports, followed by Asia with 30%, and South America and the Caribbean with 7%.

Notably, many ships are avoiding the Panama Canal, where the ongoing drought has forced daily traffic to be limited. Some LNG tankers that choose to use the Panama Canal now face waiting times of more than three weeks.

Source: https://baoquocte.vn/xuat-khau-lng-cua-my-giam-vi-nang-nong-240608.html