LNG Price Spike Brings No Windfall for US Exporters

A recent price spike in global gas markets brought no windfall for US liquefied natural gas (LNG) exporters in July. The country's LNG exports remained largely unchanged from June, slipping to 10.48 million tonnes, according to preliminary data from financial firm LSEG.

This stagnation occurred despite buyers in both Asia and Europe paying significantly more for LNG. The Asian benchmark Japan Korea Marker averaged $19.10 per million British thermal units (mmBtu) in July, while the European Dutch TTF benchmark averaged $18.07 per mmBtu. These prices were higher than those seen in June.

US projects have been running above nameplate capacity and are reluctant to defer maintenance due to the risk of unscheduled repairs. This limited growth in exports suggests sellers had little uncommitted supply available to respond to the arbitrage opportunity.