U.S. liquefied natural gas (LNG) exports to Europe experienced a significant increase in November, driven by higher prices and a strategic pivot away from Asia and Latin America. Preliminary data from financial firm LSEG indicates that the U.S. solidified its position as the world’s largest LNG exporter during this period.
Key Highlights:
Surge in Exports:
U.S. LNG exports to Europe rose to 5.09 million metric tons (MT) in November, accounting for 68% of total exports, up from 3.65 MT (48%) in October.
Overall U.S. LNG exports increased to more than 7.75 MT, compared to 7.56 MT in October.
Rising European Prices:
European natural gas prices averaged $12.90 per mmBtu in November, reflecting concerns over potential disruptions to Russian pipeline supplies.
The benchmark front-month contract at the Dutch TTF hub reached 49.03 euros per megawatt hour on November 22, equivalent to $14.97 per mmBtu.
Market Dynamics:
Nearly 70% of U.S. LNG cargoes were directed to Europe, with the U.K. purchasing 0.81 MT (about one in seven cargoes).
Exports to Asia fell to 1.64 MT (21% of total exports) in November, down from 2.67 MT (35%) in October.
Decreased Exports to Latin America:
Exports to Latin America dropped to 0.58 MT in November, down from 0.9 MT in October.
Production and Demand:
U.S. LNG producers have ramped up output as cooler weather sets in, with Cheniere Energy leading the charge.
Overall U.S. LNG natural gas demand averaged 13.65 billion cubic feet (bcf) per day in November, which could have been higher if not for outages at Freeport LNG.
Future Prospects:
December is expected to bring additional LNG production from Venture Global’s 20 MTPA Plaquemines LNG plant and Cheniere’s 10 MTPA midscale expansion project, potentially setting new records for U.S. LNG production.