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US LNG exports fall again in July on Freeport LNG's slow restart
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US LNG exports fall again in July on Freeport LNG's slow restart
Aug 1, 2024 7:23 AM

HOUSTON, Aug 1 (Reuters) - U.S. LNG exports plunged in

July to the second-lowest level of this year, LSEG ship tracking

data showed, as Freeport LNG shut for eight days after suffering

damage from Hurricane Beryl.

Texas-based Freeport LNG is the country's second-largest LNG

export facility, and its production woes in the last few years

have played a crucial role in swings in U.S. natural gas and

global LNG prices.

The U.S. exported 6.69 million metric tons (MT) of LNG in

July, compared to 7.11 MT in June and 7.60 MT in May,

preliminary data from LSEG showed.

The 6.69 MT is the second-lowest reading in 2024 and is only

higher than the 6.19 MT in April, when shipments were also

affected by mechanical problems at Freeport LNG.

Freeport LNG halted operations on July 7, ahead of Hurricane

Beryl, which hit the Texas coast near Freeport as a Category 1

hurricane. The plant remained down for eight days and resumed

operations on a phased basis. The company said the storm damaged

the plant's fin fan air coolers, which dissipate heat during

processing.

Cheniere Energy's LNG facility in Corpus Christi,

Texas, also had 30% lower feedgas flows from July 16-22 due to

planned maintenance work on its compressor station, which

reduced U.S. exports, researcher Rystad Energy said in a market

note on Monday.

While LNG exports were lower in July than June, the trend of

increased exports to Asia continued and for the first time this

year surpassed those to Europe, LSEG data showed.

Asia last month received 2.9 MT, or 43% of total exports, up

1% from June as an ongoing heat wave in the region drove demand,

according to Masanori Odaka, a senior analyst at Rystad.

"The region imported around 68 MT of LNG in the second

quarter of 2024, which is 14% and 10% higher compared to the

same period in 2022 and 2023, respectively," Odaka wrote.

Sales to Europe fell in July to 2.41 MT, or 36% of total

exports, compared to 2.99 MT, or 42% in June, according to LSEG

data.

Latin American and Caribbean countries accounted for 0.72

MT, or almost 11% of total LNG exports, slightly down from the

12% in June, LSEG data showed.

There were also exports to two African countries in July,

with Egypt buying three cargoes totaling 0.22 MT and Namibia one

cargo from Cheniere's Sabine Pass facility totaling 0.07 MT,

according to LSEG data.

There were also five cargoes for a combined volume of 0.37

MT that left U.S. LNG facilities and were out for orders, LSEG

data showed.

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