Page 13 - GLNG Week 23 2022

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US LNG exports remain

close to record high

EXPORTS EXPORTS of US LNG remained close to record of the total. However, there are expectations that
highs in May, according to new data. Citing data European demand could ease as inventories
from Refinitiv Eikon, Reuters reported on June are built up and warmer weather arrives on the
1 that the US exported 7.29mn tonnes of LNG in continent.
May, up 5.2% from 6.93mn tonnes in April and “All factors remaining constant – such as no
also representing a 12% increase year on year. further cuts in Russian gas to Europe – we may
The figure is the second highest on record, see a rebalance of LNG vessels away from the
behind 7.67mn tonnes exported from the US in region, which has become a black hole for LNG
March. Production of US LNG has risen to new – drawing in all and every available cargo,” a Rys-
highs thanks to additional liquefaction capacity tad Energy analyst, Lu Ming Pang, commented
starting up, including Venture Global’s Calcasieu in a note last week.
Pass LNG terminal in Louisiana most recently, But the threat of further cuts to Russian gas
earlier this year. flows to Europe continues to loom. State-owned
This comes amid high demand against the Gazprom said on May 31 that it would turn off
backdrop of the war in Ukraine as many buyers supply to several “unfriendly” countries that
seek alternatives to Russian gas. Indeed, sales have refused to start paying for Russian gas in
to Europe are reported to have increased, but rubles.
higher exports to South America illustrate that As this continues to play out, demand for
demand is also rising elsewhere in the world. US LNG may not fall after all, despite previous
According to Refinitiv Eikon, almost two- expectations to the contrary. ™
thirds of the cargoes exported in May went to
Europe, while Asian buyers accounted for 15%

Week 23 10•June•2022 www. NEWSBASE .com P13