US Exports Fall to 25 Cargoes Last Week as Spreads Still Favour Asia

The number of US LNG export cargoes fell last week to 25, according to the EIA as feedgas supplied to US export terminals remains curtailed.

• Total vessel capacity of the vessels was unchanged on the week at 94bcf based on Bloomberg data.
• Average natural gas deliveries to US LNG export terminals decreased by 0.3bcf/d from last week, averaging 12.9bcf/d, according to data from S&P Global Commodity Insights.
• A fall in natural gas deliveries to terminals in South Louisiana of 5.4% (0.4bcf/d) to 7.6bcf/d more than offset an increase in deliveries to South Texas of 3.6% (0.1bcf/d) to 4.2bcf/d.
• US terminal feedgas flows are today down at 12.48bcf/d according to Bloomberg with a further drop in supplies to Sabine Pass to just 3.67bcf/d.
• Asia continues to be the premium market for US LNG until the end of the year as of June 14, according to BNEF. The US netback to Asia for July at $8.69/mmbtu and to Europe is at $7.55/mmbtu.
• Asian prices have traded near the highest since December this week with tighter supply due to the Wheatstone outage and resilient demand. Japan is seeking to boost spot purchases for the remainder of this year although the higher prices are discouraging some Indian buyers.