US LNG Exports Hit Record High in November on Cooler Weather, Strong Output

(Reuters) – U.S. liquefied natural gas exports hit an all-time monthly high in November for the second straight month, driven by cooler weather and robust output from the country’s two largest producers, preliminary data from financial firm LSEG showed on Monday. The U.S., the world’s top LNG exporter, shipped 10.9 million metric tonnes last month, up from 10.1 mmt in October despite having one fewer day in the month, according to LSEG data.

Cheniere Energy, the largest U.S. LNG exporter, boosted shipments to 4.6 mmt from its two Texas plants, compared with 4.1 mmt in October. Venture Global LNG, the second-largest exporter, held steady at 3 mmt in November, LSEG ship-tracking data showed.

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LNG plants typically operate more efficiently in cooler conditions. Average temperatures along the Gulf Coast were about 8 degrees Fahrenheit lower in November than in October, according to the U.S. National Weather Service.

Surging LNG exports pushed U.S. natural gas demand for liquefaction to a record 18 billion cubic feet per day in November. Daily demand topped 19 bcfd for the first time last week. Henry Hub gas prices averaged $4.47 per mmBtu in November, up from $3.36 in October.

EUROPE REMAINS KEY MARKET

Europe received 70% of U.S. LNG exports in November, or 7.5 mmt, up from 69% in October. Turkey emerged as a major buyer, taking 12 cargoes totaling 0.9 mmt, compared with just one cargo in October.

Exports to Asia fell to 1.75 mmt, or 16% of the total, from 1.96 mmt in October, as spot demand in Northeast Asia remained weak. Latin America received 0.66 mmt, slightly higher than October, while Egypt bought 0.84 mmt amid domestic supply challenges.

European benchmark Dutch Title Transfer Facility prices averaged $10.40 per million British thermal units in November, down from $10.88 in October. The Japan Korea Marker averaged $11.25, up from $11.11.

“The arbitrage opportunity for U.S. LNG cargoes to Asia via the Cape of Good Hope remains shut, which will lead to a continued influx of flexible U.S. cargoes into Northwest Europe,” LSEG said in a note.

Reporting by Curtis Williams in Houston; editing by Nathan Crooks and Paul Simao