U.S. liquefied natural gas exports rise 16%, to new record
By Marcy de Luna
HOUSTON (Reuters) -U.S. liquefied pure gasoline (LNG) exports rose practically 16% final month to a report excessive, in line with preliminary Refinitiv information, with shipments to Europe persevering with to dominate.
U.S. LNG is in excessive demand as European nations attempt to reduce gasoline imports from Russia following its invasion of Ukraine whereas additionally trying to rebuild low inventories.
U.S. LNG exports to all locations had been about 7.43 million tonnes (MT) final month, in line with Refinitiv, up from 6.4 MT in February and topping the prior report of seven.25 MT in January.
Europe was the highest importer of U.S. LNG for a fourth straight month, taking about 65% of U.S. exports. About 12% of exports went to Asia, and three% to Latin America, the info confirmed. About 20 vessels liable for 20% of volumes had not signaled a vacation spot.
“The U.S. continues to emphasise European patrons,” mentioned Reid I’Anson, senior commodity analyst at information supplier Kpler.
MORE GAS NEEDED
Whereas U.S. LNG exports to Europe have ripped larger since November, analysts mentioned extra is required with European gasoline inventories solely a couple of quarter full, beneath the five-year common of about 34% for this time of yr.
For graphic on U.S. LNG exports, click on right here: https://graphics.reuters.com/USA-LNG/EXPORTS/lgpdwqaxqvo
The European Fee has proposed inventories be 80% full by Nov. 1, which may preserve demand sturdy after the winter heating season ends.
Germany in February mentioned it might construct two LNG import terminals and enhance reserves to chop dependence on Russian gasoline.
“With a view to handle dangers, European nations should comply with Germany’s instance and begin a process to ration gasoline demand and put together for an eventual provide reduce,” mentioned Vinicius Romano, an analyst on the Norwegian consultancy Rystad Vitality.
As many as 19 LNG tankers had been close to or on the best way to U.S. Gulf Coast export terminals on Friday, in line with information from Refinitiv Vessel Monitoring service.
International LNG costs remained excessive in March, with European costs nonetheless drawing demand from Asia. The European LNG benchmark this week traded at $39.22 per million British thermal items (mmBtu), in line with Refinitiv, in comparison with $28.61 per mmBtu for a similar week in February.
Asia spot gasoline this week traded at $35.00 per mmBtu, in line with Refinitiv, down from $37.50 per mmBtu for a similar interval in February.
(Reporting by Marcy de Luna; Enhancing by David Gregorio)
