US LNG exports to Europe increased in November due to higher prices

Mostly exported to Europe at high prices

Production may be even higher in December

was a major player in the UK market

HOUSTON (AP) — U.S. LNG exports to Europe rose in November as the world’s largest producer of the superchilled gas shipped more cargo to the continent and less cargo to Asia and Latin America, according to preliminary data from financial firm LSEG.

European natural gas prices rose to their highest level in two years in November on fears that supplies from the Russian pipeline to Europe would be halted or face further cuts.

European natural gas prices averaged $12.90 per mmBtu in November, up a dollar from $11.79 in October and $12.32 in September, with the benchmark front-month contract at the Dutch TTF hub up 49.03 euros per megawatt-hour on Nov. 22. Has reached. Equivalent to $14.97 per million British thermal units.

The United States is the world’s largest exporter of LNG and played a leading role after Russia’s invasion of Ukraine in 2022 drastically reduced Europe’s access to Russian gas imports.

Nearly seven out of every 10 U.S. LNG cargoes headed to Europe in November, according to LSEG data, as LNG exports rose to more than 7.75 million metric tons, up from 7.56 million metric tons in October, with cooler weather leading to higher Was favoring production.

Exports to Europe reached 5.09 metric tons, or 68% of total LNG exports, in November, up from 3.65 metric tons, or slightly less than 48% of total exports recorded in October. According to LSEG data, about one-fifth of total exports came from Asia.

The UK was a major player in the market, buying .81 metric tons, or one in every seven cargoes sold to the continent, according to LSEG data.

With arbitrage favoring Europe, US LNG exports to Asia fell to 1.64 metric tons, or 21% of total exports, in November from 2.67 metric tons, or 35%, in October, LSEG data showed.

LSEG data shows there were fewer U.S. LNG cargoes bound for Latin America in November, with only .58 metric tons sold to U.S. neighbors in November, down from .9 metric tons in October.

Three cargoes for a total of .23 metric tons and three cargoes for a total of .21 metric tons were sent to Egypt for orders with no specified destination until November 30.

US producers are increasing output as the weather cools, with top exporter Cheniere Energy leading the way. Cheniere on Monday was expected to draw more than 5 billion cubic feet of natural gas at its Sabine Pass, Louisiana, export plant for the fifth time in seven days, according to LSEG data.

Overall U.S. LNG natural gas demand averaged 13.65 Bcf per day in November and could have been higher had Freeport LNG, the second-largest U.S. LNG exporter, not experienced multiple outages in November, LSEG data showed.

The United States is expected to deliver the first LNG in December from Venture Global’s 20 MTPA Plaquemines LNG plant in Louisiana and Cheniere’s 10 MTPA midscale expansion project in the Pelican State, which could challenge US all-time record LNG production this month.

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