US LNG exports hit back-to-back monthly highs

Europe remains favored destination
Sabine Pass LNG export terminal
Sabine Pass LNG export terminalBechtel
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US LNG exports hit a record in September at 9.4 million tonnes, beating their previous record of 9.3 million tonnes in August, according to preliminary data from financial firm LSEG.

The increase was fueled by strong sales to Europe and Asia, and came despite unplanned shutdowns at the country's largest facility, Cheniere Energy's Sabine Pass plant in Texas, and a planned outage at Berkshire Hathaway's Cove Point plant, according to LSEG data.

The US is the world's largest LNG exporter and the level of its exports can influence global markets.

Europe remains the favored destination for US LNG exports, taking two-thirds of the total at 6.22 million tonnes. The continent received 6.16 million tonnes in August, according to the data.

US LNG exports to Asia, meanwhile, stood at 1.63 million tonnes or just over 17 per cent of the total, compared with 1.47 million tonnes in August, the data showed.

Much of the rest went to Latin America and North Africa.

In September, gas traded at $11.13 per million British thermal units (mmBtu) at the European benchmark Dutch Title Transfer Facility, and $11.32 at the Japan Korea Marker benchmark in Asia.

That suggested little or no incentive for US LNG exporters to shift from selling to the distant Asian market to the closer European market.

US LNG exports to Latin America fell in September to 0.63 million tonnes from 0.69 million tonnes in August, as the South American continent exited the Southern Hemisphere winter, according to the LSEG ship tracking data.

Egypt, meanwhile, bought seven cargoes for a total of 0.5 million tonnes in September, slightly lower than the nine cargoes it bought in August totaling 0.57 million tonnes, the data showed.

Egypt has been facing falling natural gas production, and the country announced in June it would ramp up LNG imports to meet power demand.

There were also five vessels that left US LNG export plants in September, carrying 0.4 million tonnes, that were signaling that they were still available for orders.

(Reporting by Curtis Williams in Houston; Editing by Cynthia Osterman)

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