US liquefied natural gas exports rose slightly in August as major export plants in Texas finished maintenance and European buyers increased purchases to replenish gas inventories ahead of winter, according to preliminary data from financial firm LSEG.
The United States exported 10.7 million tonnes of LNG in August, up from 10.48 tonnes in July, LSEG ship-tracking data showed.
The increase came as Freeport LNG, the country's fourth-largest LNG export plant, exited maintenance at its Texas facility and Cheniere Energy completed planned work at its Corpus Christi facility, which is the third largest in the United States.
Europe remained the top destination for US cargoes, importing 5.84 tonnes, or 55 per cent of total exports in August. That was more than one tonne higher than in July, as buyers sought supplies to refill storage before the winter heating season.
Stronger European demand narrowed the premium for Asian LNG compared to European gas benchmarks. The Japan-Korea Marker, the benchmark for Asian LNG, averaged $22 per million British thermal units (mmBtu) in August, up from $19.10 in July, while the Dutch Title Transfer Facility benchmark averaged $21.17 per mmBtu in August, up from $18.07 in July.
Asia remained the second-largest market for US LNG exports, taking 2.59 tonnes in August, down from 3.32 tonnes in July, as European buyers competed more aggressively for available cargoes.
Executives at Cheniere and Venture Global, the two largest US LNG exporters, said during second-quarter earnings calls that they expect strong LNG demand and prices through the end of the year, as Europe continues to rebuild inventories and colder weather boosts consumption.
Rebuilding Europe's inventories has been complicated by the continued conflict between the US and Iran that has limited shipments of the gas through the Strait of Hormuz.
Exports to Latin America rose to 0.9 tonnes in August as winter boosted demand in parts of South America. The shipments included two cargoes to El Salvador, a country the US rarely supplies LNG to, and one cargo from Venture Global's Plaquemines LNG plant in Louisiana to Trinidad and Tobago.
The Trinidad-bound cargo was unusual because Trinidad and Tobago is Latin America's largest LNG exporter and is not typically an importer. The country exported 0.83 tonnes of LNG in August, with six of its 12 cargoes heading to Europe as producers there also sought to capitalise on strong European demand.
Egypt remained a significant buyer of US LNG during the month, importing 0.61 tonnes, or six per cent of total US LNG exports in August, similar to the amount it imported in July, according to LSEG data.
About 0.76 tonnes, or seven per cent of US LNG exports, remained on the water without a publicly identified final destination, suggesting traders were still seeking the most profitable markets for those cargoes.
(Reporting by Curtis Williams in Houston; Editing by Bill Berkrot)
