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US LNG exports dip in September on plant maintenance
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US LNG exports dip in September on plant maintenance
Oct 11, 2024 12:00 AM

HOUSTON, Oct 8 (Reuters) - U.S. exports of liquefied

natural gas fell slightly in September as plant maintenance

trimmed output, while Europe remained the leading destination,

data from financial firm LSEG showed.

Gulf Coast plants escaped any major impact from hurricanes

last month, helping the U.S. to retain its status as the world's

largest LNG exporter.

Exports of the superchilled gas fell to 7.26 million metric

tons in September, just down from August, when the U.S. sold

7.48 MT, LSEG data showed.

U.S. energy company Berkshire Hathaway Energy's

Cove Point plant that closed in Maryland for autumn maintenance,

according to a notice to customers, caused most of the

reduction.

Natural gas flowing to the plant fell to nearly zero from an

average of around 0.7 billion cubic feet per day (bcfd),

according to LSEG data.

Hurricanes Helene and Francine caused significant damage to

several parts of the U.S., but Gulf Coast LNG facilities escaped

any direct impact.

Europe was again the favored destination for U.S. LNG with

3.2 MT or just under 42% of total exports shipped to the

continent, compared to 2.92 MT, or 39%, in August.

LNG for Europe priced at the Dutch Title Transfer Facility

averaged $11.75 per mmBtu during September, down

from $12.40 in August. In Asia, the Japan-Korea Marker index

averaged $13.41 per mmBtu, up from $13.30 in August.

An arbitrage in theory favored Asia, but according to a 2023

S&P study, it costs twice as much to send an LNG tanker from the

U.S. to Asia as to Europe, making the arbitrage less profitable.

At least two cargoes initially headed for Asia in September

were diverted to Europe, LSEG's ship tracking data showed.

Exports of LNG to Asia decreased in September to 2.96 MT,

down from 3.19 MT in August, according to LSEG data.

The figures also showed India imported at least 11 cargoes,

or 25% of all the LNG Asia bought.

U.S. LNG exporters also increased sales to Latin America

with the region taking 1.07 MT, or nearly 15%. Brazil and

Colombia were the main destinations, with other sales to

Jamaica, Panama and the Dominican Republic, the data showed.

It also showed two cargoes were shipped to Jordan for a

total of .14 MT and one to Egypt for .07 MT.

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