Rising spot demand in both the winter and summer months from Asia and Europe and lower U.S. benchmark gas prices than international prices resulted in record-high American liquefied natural gas (LNG) exports in the first half of this year, the U.S. Energy Information Administration (EIA) said on Tuesday.
U.S. LNG exports jumped to an average of 9.6 billion cubic feet per day (Bcf/d) between January and June 2021, up by 42 percent compared with the first half of 2020. In the summer of last year, U.S. exports of LNG had dropped to record lows due to the low demand and low prices during the lockdowns in the pandemic in the key natural gas importing regions, Asia and Europe.
At the end of 2020, global LNG demand started to rebound with the easing of the COVID-related restrictions and the start of the winter heating season in the northern hemisphere. As a result, U.S. exports jumped in November and December 2020.
American exports continued to soar at the start of 2021, with high winter demand due to colder weather in Asia and Europe and outages at LNG export facilities outside the United States, including in Australia, Malaysia, Nigeria, Algeria, Norway, and Trinidad and Tobago.
Click here to read the full article.
Source: Oil Price