Data shows that Europe consumed almost all US LNG exported last month.
The preliminary data of financial firm LSEG shows that U.S. LNG exports to Europe jumped by a significant amount in January, as the cold weather drove demand up and prices for super-chilled gas increased.
The total exports for the month of 8.46 million metric tons (MT) to all countries reached nearly nine out of ten cargoes. According to LSEG, this is only slightly less than the monthly record of 8,6 MT set in December 2023. It's also almost the same amount as the 8.5 MT that was sold in December of 2024.
LSEG data show that of the 8.46 MT in January, 7,25 MT or 86% went to Europe compared to 5.84 MT or 69% sold to Europe in December.
After Russia's invasion in Ukraine, the U.S. has become a major LNG supplier to Europe. The U.S. doesn't have destination clauses in its LNG export contracts. This allows buyers to move cargoes easily from one country to another depending on demand.
According to LSEG's ship tracking data, at least six cargoes destined for Asia were diverted towards Europe in January due to higher prices and lower Asian demand.
LSEG data show that the front-month European benchmark contract for gas at the Dutch Title Transfer Facility was above $15 per mmBtu on Friday. It averaged $14.67 in January and up from $13.82 in December.
According to LSEG, the Asian benchmark for the Japanese Korean Marker(JKM) was $14.166/mmBtu on average in January compared with $14.096/mmBtu per mmBtu during December.
LNG EXPORTS SHORT OF Record
In January, U.S. exports of LNG were expected to hit a record high with the addition Venture Global's Plaquemines plant in Louisiana. Six cargoes (0.43 MT) were exported from Plaquemines to Europe in January. However, the increased production was offset by a lower output at Freeport LNG, Texas. The Texas plant went offline several times or didn't operate at its full capacity.
According to LSEG, Freeport is currently the third largest LNG exporter in the United States. However, it has experienced problems with operating at full capacity.
Venture Global was the most valuable LNG Company in America when it went public in a massive IPO. The company has rapidly increased production at its 20 MTPA Plaquemines Plant, a part of which is under construction. At times, it can pull as much as 1.3 BCF of gas.
LSEG data shows that with most U.S. LNG exports going to Europe, sales to Asia dropped to 0.79 MT from 2.1 MT last December. Exports to Latin America also fell to 0.21 MT compared to 0.58 MT during December.
According to LSEG, three cargoes worth 0.21 MTPA were shipped to Egypt by the U.S. from January.
(source: Reuters)
