LNG export prices to the United States jumped 41% in the first half of 2021, according to DOE
The price increase has persisted in international natural gas sales throughout the first half of this year, according to the US Department of Energy’s (DOE) latest trade scoreboard.
US exports to Mexico led the gains with prices rising 230% to average $ 6.11 / MMBtu for the first half of 2021 (1H2021), compared to $ 1.85 for the same period of 2020. DOE’s gas regulatory division dashboard data is compiled from detailed industry disclosures.
Canadian exports to the United States marked the second largest price improvement, increasing 78% to an average of $ 3.14. This compares to an average price of $ 1.77 for the first six months of 2020.
The average price attained by US exports to Canada during 1H2021 increased 59% to $ 3.01, from $ 1.89 during the previous year period.
Overseas exports of US liquefied natural gas (LNG) recorded an average price gain of 41% in 1H2021 to $ 6.05, compared to $ 4.98 in the same period of 2020.
LNG carrier prices ranged from $ 4.59 to $ 7.07, according to the DOE. Caribbean container ship deliveries fetched the highest price – $ 10 – but for smaller volumes.
International gas trade volumes have increased as prices have increased.
[Actionable Insight: Did you know that NGI is one of only two Price Reporting Agencies that include trade data from the Intercontinental Exchange. Find out more.]
As the North American champion of international sales, the United States exported 3.25 Tcf, or 18 Gcf / d, in 1H2021. The total increased by 24% per year, from 2.62 Tcf, or 14.4 Gcf / d.
Growth in US exports included a 14.3% increase in sales to Mexico to 1.05 Tcf, or 5.8 Bcf / d, and a 22% jump in LNG shipments to 1.7 Tcf, or 9, 5 Gcf / d. Exports to Canada were unchanged at 469 Bcf / d, or 2.6 Bcf / d.
U.S. LNG cargoes sailed to 34 countries in the first half of 2021, the DOE said. More than half of the deliveries went to the top five LNG destinations: China, South Korea, Japan, Brazil and India.
Canada, the second-largest exporter, increased pipeline flows to the United States by 12% to 1.45 Tcf, or 8 Bcf / d. Mexican exports were negligible.