A sharp hike in LNG (liquefied natural gas) of the US in the last one year has salvaged the country’s pride and prospect as one of world’s leading exporter of the fuel (chilled). It happened regardless of several defeasances of cargo coming its way in the summer.
Contributing massively to the global gas supply, more than 21 million tonnes got added per year in 2019 by the US LNG followed by 16 million tonnes in the current year.
Following the pandemic pressure, US LNG contracts gave leeway to buyers to quash cargoes in bulk. However, exports have never been good during 2020. They are on a spree of getting curtailed. Many projects got stalled due to rejections. On the contrary, its deliveries and exports to Europe and Asia surged subsequently to a year high.
As per the analysts, the US LNG has support from a humongous production capacity. So, it can deliver exports when there is a wide gap between the price differential of the US and the rest of the markets.
From January until July, the United States exported 26.5 million tonnes of the liquified gas. As per Refinitiv Eikon data, it was a massive 41 per cent leap. On the other side, vice president of gas and power at Rystad Energy, Xi nan is expecting the country to yield 55 million tonnes gas (LNG) in 2020 alone, which would be eclipsing 2019 by 53 per cent.