• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days They pay YOU to TAKE Natural Gas
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 3 days What fool thought this was a good idea...
  • 6 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 22 hours A question...
  • 12 days The United States produced more crude oil than any nation, at any time.
Comparing Big Oil to Big Tobacco is Ludicrous

Comparing Big Oil to Big Tobacco is Ludicrous

Comparing Big Oil to Big…

EU Unleashes Sweeping Sanctions Against Moscow and Minsk

EU Unleashes Sweeping Sanctions Against Moscow and Minsk

The European Commission presents a…

U.S. LNG Exports Are Surging Despite Jump In Shipping Costs

Despite a 65-percent jump in the cost of U.S. exports of liquefied natural gas to the biggest import market, Asia, American LNG shipments abroad have soared to record highs and are likely to reach new all-time highs later this year.

According to estimates from independent energy research firm Rystad Energy, the short-run marginal cost (SRMC) of U.S. LNG exports to the Asian market has risen to about $5.60 per million British thermal units (MMBtu) as of June 2021. That cost is a massive 65-percent higher than in the middle of last year, when LNG demand was depressed with the pandemic, and is 30 percent higher than the 2020 average of $4.30 per MMBtu, Rystad Energy estimates in its new report.

Despite the higher costs, U.S. exporters of LNG are not expected to shut in capacity as they did last year when demand was low. This year, LNG demand globally, including in the most important market, Asia, has rebounded strongly. 

“Despite the significant cost increase, the US is not the most expensive supplier to Asia this year, however. The comeback of Egyptian LNG to the market has seen the North African country assume the role as the marginal supplier of LNG, with an SRMC of about $6.30 per MMBtu,” Rystad Energy said.

Even the higher costs would be absorbed because of the strong demand in Asia and the high Asian spot prices of around $12 per MMBtu, according to the research firm.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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