• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 6 days Wind droughts
  • 13 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 3 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 9 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Xi Is Set To Be Re-Elected As China’s Leader
  • 7 days Oil Prices Fall After Fed Raises Rates
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 12 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
Sweden Finds A Fourth Leak In Nord Stream Pipelines

Sweden Finds A Fourth Leak In Nord Stream Pipelines

Sweden’s Coast Guard has discovered…

Nigeria Has Failed To Capitalize On High Oil Prices

Nigeria Has Failed To Capitalize On High Oil Prices

Despite oil prices sitting well…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

U.S. LNG Exports Crash By More Than 50%

  • Historically low natural gas prices have caused U.S. LNG exports to crash by more than 50 percent since January.
  • The U.S. has now become the world’s swing producer of LNG, a historic moment for markets.
  • The EIA expected U.S. LNG export capacity to be utilized at less than 50 percent through to August

Historically low natural gas prices from Asia to Europe and lower demand in the pandemic have resulted in U.S. exports of liquefied natural gas (LNG) dropping from 8.1 billion cubic feet per day (Bcf/d) in January to an expected export volume of just 3.2 Bcf/d in July, the U.S. Energy Information Administration (EIA) said on Tuesday.  

Milder winter, lower demand in the pandemic, and high inventories, especially in Europe, have sent natural gas prices at the key benchmarks in Asia and Europe to record lows in recent months, making U.S. exports of LNG uneconomical, the EIA said.

Last year, the United States became the world’s third-largest LNG exporter on an annual basis, behind only Qatar and Australia, as several LNG export facilities started up operations in the U.S. in 2019.

But this year, buyers have been canceling cargoes of U.S. LNG as demand declined and inventories rose, lowering demand for American LNG, which also became uneconomical to ship to markets in Asia and Europe, where the regional benchmark prices hit record lows.

The U.S. has become the world’s swing producer of LNG as liquefaction capacity tumbled in recent months amid an LNG glut, low prices, and weak demand in the pandemic, IHS Markit said in an analysis last month.   Related: Why The $17.5 Billion Write-Down Is Just The Beginning For BP

“The inevitable has happened. U.S. LNG capacity utilization has begun a turndown in response to market forces exacerbated by COVID-19. We are witnessing an historic event where U.S. LNG is taking on the new role of swing supplier,” Terrell Benke, executive director, IHS Markit, said in a statement.

Total U.S. LNG capacity utilization has declined to 65 percent, and further drops are coming in the summer when utilization rates could drop below 50 percent, IHS Markit said at the end of May.

Based on the number of canceled cargoes for the coming months, the EIA expects U.S. LNG export capacity will be utilized at less than 50 percent in June, July, and August 2020.

By Charles Kennedy for Oilprice.com

More Top Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News