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Most exported to Europe at higher prices

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Production could go even higher in December

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UK was major player in the market

By Curtis Williams

HOUSTON, Dec 2 (Reuters) - U.S. LNG exports to Europe

surged in November as the world's largest producer of the

superchilled gas sent more cargoes to the continent and fewer to

Asia and Latin America, according to preliminary data from

financial firm LSEG.

European natural gas prices climbed in November to their

highest levels in two years on fears remaining Russian pipeline

supplies to Europe will be halted or face further curtailment.

European natural gas prices averaged $12.90 per mmbtu in

November, more than a dollar higher than $11.79 in October and

higher than $12.32 in September, with the benchmark front-month

contract at the Dutch TTF hub reaching 49.03 euros per megawatt

hour on Nov. 22, equivalent to $14.97 per million British

thermal units (mmBtu).

The United States is the world's largest LNG exporter and

played a major role in 2022 after Russia's invasion of Ukraine

led to sharp reductions in Europe's access to Russian gas

imports.

Nearly seven of every 10 U.S. LNG cargoes headed to Europe

in November as LNG exports rose to more than 7.75 million metric

tons (MT), up from 7.56 MT in October, with cooler weather

favoring higher output, according to LSEG data.

Exports to Europe reached 5.09 MT in November or 68% of

total LNG exports, up from 3.65 MT, or just under 48% of total

exports recorded in October. Asia accounted for about a fifth of

total exports, according to LSEG data.

The U.K. was a major player in the market, buying .81 MT, or

one in every seven cargoes sold to the continent, according to

LSEG data.

With the arbitrage favoring Europe, U.S. LNG exports to Asia

fell to 1.64 MT or 21% of total exports in November, from 2.67

MT or 35% in October, LSEG data showed.

There were fewer U.S. LNG cargoes destined for Latin America

in November with only .58 MT sold to the U.S. neighbors in

November, down from .9 MT in October, LSEG data showed.

There were three cargoes sent to Egypt for a total of .23 MT

and three cargoes for a total .21 MT that were for orders with

no set destination as of Nov. 30.

U.S. producers have been ramping up output as the weather

cools with top exporter Cheniere Energy leading the way.

On Monday, Cheniere was expected to pull over 5 billion cubic

feet (bcf) of natural gas for the fifth time in seven days at

its Sabine Pass, Louisiana, export plant, according to LSEG

data.

Overall U.S. LNG natural gas demand averaged 13.65 bcf per

day in November and could have been higher had the

second-largest U.S. LNG exporter, Freeport LNG, not experience

several outages in November, LSEG data showed.

With the United States expecting first LNG in December from

Venture Global's 20 MTPA Plaquemines LNG plant in Louisiana and

Cheniere's 10 MTPA midscale expansion project, also in the

Pelican state, this month could challenge the U.S. all-time

record LNG production.

(Reporting by Curtis Williams in Houston)