USLNG Gas Flows Decline
Gas Deliveries to USLNG Export Facilities Decline to Lowest Level Since Oct. 2019 (EIA)
Natural gas deliveries to USLNG export facilities declined to 5.6 bcf/d on May 24 and averaged 6.7 bcf/d from May 1 through May 26, according to data by IHS Markit. This was the lowest level of LNG feedgas deliveries since October 2019, despite 2.0 bcf/d baseload (2.3 bcf/d peak) of new liquefaction capacity that was commissioned over this period. Declining levels of feedgas to LNG export facilities (and LNG export volumes) reflect a seasonal decline in LNG demand in the major consuming markets in Asia and Europe, as well as the reduction in global LNG demand resulting from mitigation efforts related to the corona virus (COVID-19), and historically low global LNG spot prices, which reduce economic viability of U.S. LNG exports. Lower levels of U.S. LNG exports are expected to continue through the summer as buyers have cancelled as many as 20 cargoes for June delivery and up to 45 cargoes for July delivery, according to trade press reports.