Global LNG Demand Outpaces US Supply Amid Ongoing Maintenance

The global demand for liquefied natural gas (LNG) is strong, but US exporters are struggling to meet that demand due to ongoing maintenance at facilities like Freeport LNG. In July, US LNG exports slipped to 10.48 million metric tons from 10.6 million in June, despite higher prices of $19.10 per million British thermal units for the Japan Korea Marker and $18.07 for Europe's TTF benchmark.

Europe took in 4.76 million metric tons of US LNG in July, up from 4.41 million in June, but storage levels remain low at 57% full as of August 1, below the five-year average of 74%. This is a concerning position heading into winter and keeps the bid under US exports.

The situation is not bearish, but rather stuck due to production and storage issues. Global buyers want more LNG, but US plants cannot deliver enough to tighten the domestic balance. When maintenance ends and export capacity comes fully back online, that will change, for now, it has not changed yet.