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US LNG exports still booming

despite cargo cancellations

Exports of LNG from the US have still risen year on year, despite a spate
of cargo cancellations over the summer as a result of global oversupply

COMMENTARY MUCH has been made of the cancellations over of US LNG to Europe, meanwhile, have shrunk
the summer of cargoes due to be loaded from US just one cargo, according to Reuters.
LNG export terminals. However, the latest data The news service added that total European
WHAT: show that US LNG exports are still up compared LNG imports were lower in June and July, while
US LNG exports are up with 2019, with new liquefaction capacity addi- Asian deliveries were stable, and that this sug-
compared with 2019 tions helping the country to remain one of the gests the US has increased its market share.
despite recent cargo dominant players on the global market even with More cancellations are due in August, but
cancellations. the cancellations factored in. their pace is reported to be slowing, and there
Refinitiv Eikon data reported by Reuters are expectations that US shipments will pick up
WHY: showed that the US exported 26.5mn tonnes further in September and October.
Liquefaction capacity of LNG in January-July 2020, marking a 41% Traders cited by Reuters expect winter car-
additions have offset increase year on year. And the news service also goes to go primarily to Asia as prices there rise.
the cancellations and cited Rystad Energy’s vice-president of gas and However, this depends on how temperatures
are helping the US to power markets, Xi Nan, as saying he expects the behave over the coming winter, as well as on
dominate LNG markets. US to produce 55mn tonnes of LNG over the a limited impact from any new coronavirus
whole of 2020, which would equate to a 53% (COVID-19) spikes.
WHAT NEXT: increase on 2019.
A report has expressed While regional price differentials have nar- Capacity surge
scepticism over new rowed recently, in the first half of 2020, prices Over 21mn tonnes per year (tpy) of US LNG
demand for US LNG from in Europe and Asia made US LNG an eco- capacity was added in 2019 and more than 16mn
Chinese buyers. nomically attractive option. This, coupled with tonnes in 2020. New capacity is still starting up –
the new additions to US liquefaction capacity, with more in the pipeline.
allowed the country to remain dominant in the Earlier this month, Kinder Morgan requested
global LNG market, retaining its status as the regulatory permission to bring the seventh
third-largest producer of the super-chilled fuel small-scale liquefaction train into service at the
in the world. Elba Island LNG export terminal in Georgia.
And even with US exports falling – and ship- And last week, federal regulators approved a
ments to Latin America in particular taking a hit request to bring the third 5mn tpy train online
over the summer – deliveries to Asia remained at Cameron LNG in Louisiana.
67% higher than they were last year. Deliveries Two new LNG export facilities are currently

P4 www. NEWSBASE .com Week 31 06•August•2020