US LNG exporters look to Europe

Through Sergio Chapa to 12/22/2021

(Bloomberg) – Cold-stricken Europe attracts a flotilla of U.S. liquefied natural gas cargoes amid an energy crisis that has pushed gas prices to record highs.

Faced with a winter shortage and little relief from the continent’s main supplier, Russia, natural gas in Northwest Europe is trading at around $ 57.54 per million British thermal units, up from almost a third compared to the previous week. That’s about $ 24 more than Asian prices and over 14 times more than gas sold on the American benchmark Henry Hub.

Of 76 U.S. LNG cargoes in transit, 10 tankers carrying a total of 1.6 million cubic meters of heating and power plant fuel have declared destinations in Europe, according to shipping data compiled by Bloomberg. Another 20 tankers carrying around 3.3 million cubic meters appear to be crossing the Atlantic Ocean and heading for the mainland. Almost a third of the cargo comes from Cheniere Energy Inc.’s Sabine Pass LNG export terminal in Louisiana, according to shipping data.

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

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