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 due to prolonged heat, forcing 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 the LSEG Eikon market tracking platform (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 Louisiana and Texas facilities. Analysts expect the volume of U.S. gas going into LNG export plants in September to rebound as the facilities resume normal processing speeds.

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%, South America and the Caribbean with 7%.

Notably, many ships are avoiding the Panama Canal, where the prolonged drought has forced daily traffic restrictions, with some LNG tankers choosing to use the canal now facing wait times of more than three weeks.

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