News Post
According to EIA Europe is taking in more US LNG than Asia
U.S. exports of LNG have been growing steadily and reached a new peak of 4.7 Bcf/d in May 2019, according to the latest data published by the U.S. Department of Energy’s Office of Fossil Energy. This year, the United States became the world’s third-largest LNG exporter, averaging 4.2 Bcf/d in the first five months of the year, exceeding Malaysia’s LNG exports of 3.6 Bcf/d during the same period. In 2019–20 the United States is expected to remain the third-largest LNG exporter in the world, behind Australia and Qatar.
U.S. LNG exports have increased as four new liquefaction trains with a combined capacity of 2.4 Bcf/d — Sabine Pass Train 5, Corpus Christi Trains 1 and 2, and Cameron Train 1 — came online since November 2018.
A warm winter in Asia and declining price differentials between European and Asian spot natural gas prices led to increased volumes of U.S. LNG exports delivered to Europe. Europe’s total LNG imports in the winter of 2018–19 averaged 10.2 Bcf/d, 60% higher than in the previous two winters and the highest winter average since at least 2013, according to CEDIGAZ LNG data.
Because the round-trip transportation costs from the U.S. Gulf Coast to Europe are about $1.50 per MMBtu lower than those to Asian markets, a sufficiently narrow price spread between European and Asian spot natural gas/LNG prices will make Europe the preferred destination for exporters of U.S. LNG.
EIA forecasts U.S. LNG exports will average 4.8 Bcf/d in 2019 and 6.9 Bcf/d in 2020 as new liquefaction trains at Cameron, Freeport, and Elba Island are commissioned in the next 18 months.
Source: US Energy Information Administration
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