HOUSTON, Dec 2 - U.S. liquefied natural gas (LNG) exports to Europe increased significantly in November, as the country sent a larger share of its cargoes to the continent while reducing shipments to Asia and Latin America, according to preliminary data from financial firm LSEG.
European natural gas prices reached their highest levels in two years during November, averaging $12.90 per million British thermal units (mmBtu), driven by concerns over the potential halting or further reduction of Russian pipeline supplies to Europe. The benchmark front-month contract at the Dutch TTF hub peaked at 49.03 euros per megawatt hour on November 22, equivalent to $14.97 per mmBtu.
In November, nearly 70% of U.S. LNG cargoes were directed to Europe, with total exports surpassing 7.75 million metric tons (MT). This marked an increase from 7.56 MT in October, fueled by cooler weather that supported higher output. Exports to Europe reached 5.09 MT, accounting for 68% of total LNG exports, up from 3.65 MT or nearly 48% in October.
Asia's share of U.S. LNG exports fell to about 21% in November, with shipments totaling 1.64 MT, down from 2.67 MT or 35% in October. Exports to Latin America also decreased, with only 0.58 MT sold in November compared to 0.9 MT the previous month. Additionally, three cargoes were sent to Egypt totaling 0.23 MT, and three cargoes without a set destination accounted for 0.21 MT.
U.S. producers, led by top exporter Cheniere Energy, have been increasing output as temperatures drop. On December 2, Cheniere was expected to draw over 5 billion cubic feet (bcf) of natural gas for the fifth time in seven days at its Sabine Pass, Louisiana, export facility. Overall U.S. LNG demand averaged 13.65 bcf per day in November, which could have been higher if not for several outages at Freeport LNG.
Looking ahead, the U.S. is poised to receive its first LNG from Venture Global's 20 MTPA Plaquemines LNG plant in Louisiana this December, along with Cheniere's 10 MTPA midscale expansion project, potentially setting a new all-time record for U.S. LNG production.