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.