U.S. liquefied natural gas (LNG) output experienced a decline in May, primarily due to maintenance and outages at the largest export facility, according to preliminary data from LSEG ship tracking. The United States is recognized as the world’s leading LNG exporter, and fluctuations in its production levels can significantly influence global LNG prices. In May, U.S. exports totaled 8.9 million metric tons (MT), contrasting with a record high of 9.3 MT in April. All U.S. LNG facilities reported temporary reductions in output compared to the previous month.
Notably, Cheniere Energy confirmed that its Sabine Pass facility in Texas, the largest in the country with a capacity of 30 MT per annum (mtpa), was undergoing maintenance. Additionally, gas flows to Sabine Pass reached a 23-month low of approximately 3.1 billion cubic feet per day (bcfd), compared to an average of 4.3 bcfd in the previous week. The European market remained the primary destination for U.S. LNG exports, as traders capitalized on higher prices in Europe compared to Asia. Gas prices at Europe’s Title Transfer Facility (TTF) rose to $11.68 per million British thermal units (mmBtu) in May, an increase from $11.48 in April.
Out of the 8.9 MT exported, 6.05 MT (68%) were sent to Europe, maintaining the same percentage as in April. Exports to Asia were lower, with 1.88 MT (21%) compared to 2.05 MT (22%) in April. China, the world’s largest LNG consumer, has seen subdued demand due to stronger domestic production and ongoing trade disputes with the U.S. Its LNG imports continue to be minimal as it resells U.S. gas to dodge retaliatory tariffs. With expected financial approvals for six new LNG projects in 2025, the U.S. is set to enhance its output by an additional 90 mtpa by 2030, affirming its status as the top global LNG exporter.