By Sabina Zawadzki
LONDON, Sept 3 (Reuters) - U.S. exports of liquefied natural
gas (LNG), negligible just three years ago, now amount to 10% of
the global market and at 22 million tonnes so far this year are
equal to the total volumes pumped out in 2018, Refinitiv data
showed on Tuesday.
The data, comprised of tracked individual journeys made by
LNG tankers from supply source to destination, also showed LNG
production hit an all-time high last month of 31 million tonnes.
As global volumes grow, Qatar, for years the world's largest
LNG supplier, lost market share to Australia, which exported
more LNG than any other country in the past two months.
The supply surge has been long in the making as liquefaction
and export facilities on the U.S. Gulf Coast come onstream after
years of development, boosted also by a new mega-terminal in
Russia's Arctic and facilities in Australia.
The batting order for the world's largest exporters has been
Australia, Qatar, the United States, Russia and Malaysia for the
past two months, whereas in previous years Nigeria and Indonesia
vied for places in the top five.
Soaring supplies from U.S. LNG terminals have upended the
global market not just by boosting volumes - and depressing
prices - but also through flexible destination contracts with
long-term buyers. Such deals allow countries' cargoes to ebb and
flow as prices and demand dictate.
This is reflected in the data, which shows the influx of
U.S. LNG to northwest Europe receded from a March peak while
flows to Latin America picked up in periods of low hydropower.
Japanese and South Korean buyers, many of which supported
U.S. projects at inception by committing to buy volumes,
remained a strong albeit falling component of total sales.
But purchases by China stuttered to a halt in February as
tariffs imposed on U.S. LNG by Beijing weighed on already poor
pricing conditions for Asian buyers.
The U.S. supply surge has depressed global LNG prices, and
with it, European benchmark gas prices, closing the arbitrage
for cargoes between the Atlantic and Pacific basins. In
addition, demand growth in Asia this year has been weak in the
absence of extreme weather and in comparison to a strong 2018.
The LNG industry is set to continue its rapid development,
taking advantage of the soaring energy needs of a richer
developing world as well as demand for gas boosted by the fuel's
relatively clean environmental credentials.
In the United States, export plants with a capacity of 46
million tonnes per year (mtpa) are in operation or ramping up,
with another 27 mtpa approved, financed and being built.
At such numbers, U.S. production will rival Qatar's,
although Doha plans to expand its own facilities to 110 mtpa.
New mega-projects with capacities of 10 mtpa or more and the
expansion of existing facilities are planned in Mozambique,
Nigeria, Arctic Russia, Canada's West Coast, Mexico and Papua
New Guinea.
U.S. LNG year to dat equals 2018 as global supplies soar -
market shares https://tmsnrt.rs/2zLnelS
U.S. LNG year to date equals 2018 as global supplies soar -
destination https://tmsnrt.rs/2PR9gtJ
U.S. LNG year to date equals 2018 as global supplies soar - MoC
https://tmsnrt.rs/2PCU8jj
U.S. LNG grabs 10% market share as Jan-Aug exports equal 2018
volumes - top 10 new https://tmsnrt.rs/2PC5KmR
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