U.S. LNG exports jumped by 20% between January and April from a year earlier as buying activity in Europe remained strong amid a cold winter and low gas inventory levels.
U.S. LNG shipments hit a record high for the January-April period of 34.6 million metric tons, according to data from Kpler cited by Reuters columnist Gavin Maguire.
For most of the past winter, European benchmark gas prices were higher than Asian spot LNG prices for delivery into north Asia, attracting more cargoes to European import terminals. Additionally, LNG demand in China and the rest of Asia has been tepid at best, which has helped Europe as competition for cargoes hasn’t been as fierce as in previous years.
At the end of the winter heating season, Europe had its natural gas storage sites depleted to levels last seen three years ago as a cold winter and low renewable energy output, with low wind speeds and little sunshine, forced countries to use more gas than in the past three winters.
At the same time, supply from America is growing with the start-up of Venture Global’s second facility, Plaquemines LNG, in Louisiana, and the commissioning of Cheniere’s Corpus Christi Stage 3 project. Both Plaquemines LNG and Corpus Christi Stage 3 achieved first gas in late December 2024 and are expected to ramp up operations and exports throughout this year.
LNG exports from the United States have increased every year since 2016, rising from 0.5 billion cubic feet per day (Bcf/d) in 2016 to 11.9 Bcf/d in 2024, making the United States the world’s largest LNG exporter in 2023 and 2024.
U.S. LNG gross exports are expected to further increase by 19% to 14.2 Bcf/d in 2025, and by 15% to 16.4 Bcf/d in 2026, according to EIA estimates.
The start-up timing of two additional export plants – Plaquemines LNG Phase 2 and Golden Pass LNG—could significantly affect the forecast because these facilities represent 19% of incremental U.S. LNG export capacity in 2025–26, the EIA said last month.
By Tsvetana Paraskova for Oilprice.com
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