US Gas Exports to Europe, China, Surging

December 23, 2021

If you have not yet see this months Yale Climate Connections video, go there now.

Bloomberg:

Cold-stricken Europe is drawing a flotilla of U.S. liquefied natural gas cargoes amid an energy crisis that has sent gas prices to record levels.

Facing a winter shortage and little relief from the continent’s main supplier Russia, natural gas in Northwest Europe is trading for about $57.54 per million British thermal units, up almost a third from a week earlier. That’s roughly $24 higher than Asian prices and more than 14 times higher than gas being sold on U.S. benchmark Henry Hub. 

Out of 76 U.S. LNG cargoes in transit, 10 tankers carrying a combined 1.6 million cubic meters of the heating and power plant fuel have declared destinations in Europe, shipping data compiled by Bloomberg shows. Another 20 tankers carrying an estimated 3.3 million cubic meters appear to be crossing the Atlantic Ocean and are on a path to the continent. Nearly one-third of the cargoes come from Cheniere Energy Inc.’s Sabine Pass LNG export terminal in Louisiana, the shipping data shows. 

U.S. LNG export terminals are operating at or above capacity after reaching record flows on Sunday. Asia is typically the top destination for U.S. LNG cargoes, but that has changed this winter with the significant premium for gas in Europe. 

As the Bloomberg diagrams above and below indicates, LNG tankers in transit, can turn on a dime and head for wherever the highest prices are. That means competition that US consumers have never faced before.

2 Responses to “US Gas Exports to Europe, China, Surging”

  1. rhymeswithgoalie Says:

    Europe is richer than South America. Europe wins.

  2. Keith McClary Says:

    For comparison with the first chart:

    “U.S. dry natural gas production in 2020 was about 33.5 trillion cubic feet (Tcf), an average of about 91.5 billion cubic feet per day”

    I wonder how this will affect North American prices?


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