Netherlands remains top destination for US LNG in May despite lower European market share

 

 

The Netherlands remained the top destination for US LNG delivered in May, even as weakening European demand saw the region’s market share of monthly US LNG cargoes fall below 50% for the first time in nearly a year, an S&P Global Commodity Insights analysis showed June 4.

Europe and Turkey took in just under half of the 97 US LNG cargoes exported during the month, down from nearly 57% in April and almost 59% in March.

The Netherlands received 14 US LNG cargoes in May, followed by France and Japan, which each imported eight cargoes, while Germany and India both received seven, Commodity Insights data showed. Overall during the month, 47 US cargoes arrived in Europe and Turkey.

The overall number of US LNG cargoes delivered in May was lower than the 111 delivered in April amid maintenance work at US terminals.

Platts, part of Commodity Insights, assessed the Gulf Coast Marker for US FOB cargoes loading 30-60 days forward at $10.05/MMBtu on June 4, down 50 cents on the day.

Healthy storage levels in the EU have helped to curb demand even as the region began preparing for the upcoming winter season. Natural gas storage levels in the EU were over 70% full as of June 2, slightly higher than at the same point of 2023, according to Aggregated Gas Storage Inventory data.

The Platts DES Northwest Europe Marker for July was assessed at $10.825/MMBtu June 4, down 57.20 cents on the day.

The drop-off in US volumes flowing to Europe came amid rising demand in Asia, which received more than a third of US shipments during the month for the first time since September 2023. Buying interest in Asia strengthened during the month on hot weather across parts of the continent that increased the need for LNG to meet cooling demand, most notably in India and other Southeast Asian countries.

Thailand imported six US LNG cargoes in May, triple the amount it received in April. Meanwhile. India’s imports of US cargoes also rose on the month, having imported five US LNG cargoes in April.

Of the 35 US LNG cargoes delivered to Asia in May, all but one opted against transiting the drought-stricken Panama Canal in favor of the longer route around the southern tip of Africa, according to Commodity Insights data. US LNG exporters face bottlenecks at the Panama Canal because of low water levels, and shippers have also been avoiding the Suez Canal because of security risks in the Red Sea.

The May voyages of US LNG around the Cape represented the largest number of monthly cargoes making the journey since Commodity Insights began recording the data in 2010. April set the previous record, with the US exporting 30 LNG cargoes to Asia via the Cape.

Year-to-date, 133 US LNG cargoes have transited via the Cape of Good Hope to reach Asia, marking another record.

Platts assessed the July Southeast Asia Marker at $12.363/MMBtu on June 4, down 25 cents on the day.

Source: Platts