🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

U.S. LNG exports remain flat as domestic market braces for cold season

Published 12/01/2022, 06:41 PM
Updated 12/01/2022, 06:45 PM
© Reuters. FILE PHOTO: Model of LNG tanker is seen in front of the U.S. flag in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration
NG
-

By Marianna Parraga

HOUSTON (Reuters) - U.S. liquefied natural gas exports were flat last month, Refinitiv shipping data showed on Thursday, as production remained limited and the arrival of winter weather in the Northern Hemisphere led utilities to build inventories for domestic use.

U.S. natural gas futures' implied volatility, a measure of the likely movement in prices, hit a record last week on the outlook for colder weather and doubts about the restart of the Freeport LNG plant in Texas this month. The plant has been idled since a June explosion.

Freeport LNG, which provides around 20% of U.S. LNG processing, has said it aims to resume gas processing in mid-December depending on regulatory approvals. Analysts have said it could be early 2023 before shipments resume.

In November, U.S. producers shipped a total of 88 cargoes carrying 6.31 million tonnes of LNG, almost unchanged from the 6.28 million tonnes of the previous month, according to preliminary figures.

U.S. LNG producers sent more LNG to Europe, directing 72% of total cargoes to European customers compared with 20% to Asia. In October, 59% of U.S. LNG cargoes sailed to Europe and 24% to Asia.

GRAPHIC - U.S. LNG exports flat as domestic gas demand rises

https://fingfx.thomsonreuters.com/gfx/ce/mopaknrrdpa/rOdAA-u-s-lng-exports-flat-as-domestic-gas-demand-rises.png

"The market is going into heating season with what appears to be sufficient storage, having built to 3.64 trillion cubic feet," said Ade Allen from Rystad Energy in a note to clients this week. "However, market participants can't get complacent yet as mother nature is the ultimate unknown."

© Reuters. FILE PHOTO: Model of LNG tanker is seen in front of the U.S. flag in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration

On the U.S. gas output side, supply showed a modest uptick last week as supply from Appalachia rose after being tepid all year and volumes in Permian and Haynesville shale fields were strong.

Concerns remain that a lack of robust supply growth could bring imbalances, especially for the spring of 2023, and that external risks such as a rail workers strike could push prices higher.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.