MOSCOW, 1 Sep — PRIME. Export deliveries of liquefied natural gas (LNG) from the US rose slightly in August. The shutdown of the second largest US LNG terminal, which began in June, continues to limit the pace of exports. This is evidenced by data released on Thursday by Refinitiv Eikon.
The suspension of the Freeport LNG terminal due to the explosion resulted in a reduction in monthly exports of about 1.6 million tons. Last week, company representatives said that the restart of the terminal, previously scheduled for October, was postponed to a later date. By the end of November, the capacity utilization of the Freeport terminal will reach 85%, and the facility should reach its full capacity in March. The terminal’s capacity is 15 million tons per year.
Restrictions on LNG exports are pushing global prices up to new record highs amid strong demand and a temporary halt in Russian gas supplies to Germany since August 31. This week, LNG in the Netherlands has been trading at around $77 per MMBtu, more than doubling its February levels.
The US exported 6.25 million tons of LNG in August, up from 6.16 million tons in July, according to Eikon data. The figure is still below the levels observed before the explosion at the Freeport terminal.
US LNG exports to Europe, Latin America and the Caribbean declined in August. Sales to Asia rose on the back of strong demand from South Korea and Japan, which pushed spot LNG prices in the Asian market to a record high last week.
The European market has “breathed a sigh of relief” in recent days after strong LNG and natural gas purchases helped fill storage to target levels ahead of the EU’s target date, Rystad Energy said in a research note.