Stalled US LNG Exports Fail to Capitalize on Global Price Rally
US liquefied natural gas (LNG) exports stalled in July despite higher global gas prices, as American producers were unable to take advantage of the rally due to maintenance and seasonally lower production.
According to preliminary data from financial firm LSEG, US LNG exports slipped to 10.48 million metric tons (MT) in July from 10.6 MT in June.
The stagnant production came as buyers in both Asia and Europe paid significantly more for LNG, with the Asian benchmark Japan Korea Marker averaging $19.10 per million British thermal units in July, maintaining a premium over Europe's Dutch TTF benchmark, which averaged $18.07 per mmBtu.
Exporters traditionally use summer months for maintenance, as warmer weather makes it less efficient to supercool natural gas into liquid form. This year was no exception, with plants including the country's third-largest export facility, Freeport LNG, taking the opportunity to do maintenance.