(The Center Square) — U.S. LNG exports reached a fourth consecutive monthly high in October at 10.1 million tons as new gas liquefaction plants on the Louisiana and Texas Gulf Coast commenced operations, LSEG data shows.
Activity ramped up at Venture Global’s Plaquemines plant in Louisiana and Cheniere Energy’s Corpus Christi Stage 3 project in Texas, with production at each of the LNG export facilities up about 600,000 tons from September, LSEG data shows. Overall, U.S. LNG exports in October were up 1 million tons, or 11%, from a revised 9.1 million tons in September.
Shipping data provided by Bloomberg shows 84 LNG tankers departed Louisiana export terminals in the four weeks between Oct. 2 and Oct. 29, representing 67% of total U.S. loadings in the period. In the same four weeks, 38 LNG tankers departed Texas export facilities, while six shipments left terminals in Virginia and Georgia, the data shows.
Cheniere’s Sabine Pass facility in Cameron Parish, the world’s largest export terminal with capacity of 29.5 million tons per year, shipped a record 33 cargos in October. Venture Global and Cheniere together accounted for 72% of total U.S. exports in October, LSEG data shows.
While U.S. LNG shipments continued to increase in October, more of the Haynesville shale gas that feeds the export terminals changed hands during the month.
JERA, one of the world’s largest LNG buyers, agreed in October to pay $1.5 billion to GEP Haynesville and Williams for assets around the South Mansfield gas field in Louisiana, as reported by The Center Square. In March, Rockcliff Energy III, a subsidiary of Tokyo Gas, purchased a 70% interest in Chevron’s East Texas Haynesville shale assets.
“A land rush into the Haynesville by Asia companies with LNG commitments continues with JERA acquiring the South Mansfield joint venture from GEP Haynesville and Williams for $1.5 billion,” said Andrew Dittmar, principal analyst at Enverus Intelligence, in a research note.
“Asia-based buyers have become the dominant force for acquisitions in the play, willing to outbid domestic producers to secure natural gas feedstock linked to the Gulf Coast’s growing LNG hub. For these buyer groups, a premium for assets is justified to hedge against a longer-term increase in Henry Hub as Haynesville inventory is depleted and to ensure a cost-effective source of supply,” Dittmar wrote.
Strong sales to Europea and Asia drove record overseas purchases of U.S. LNG in October, according to LSEG data. Europe, the most popular destination for U.S. exports in September, received about 6.9 million metric tons, or about 69% of all LNG shipments from American ports. Asian nations received about 1.96 million metric tons in September, about 19% of total U.S. exports.
President Donald Trump has taken actions to advance U.S. energy dominance through trade deals, such as an agreement with the European Union in July that includes a pledge to purchase up to $750 billion of American energy products by 2028.
U.S. Department of Energy data for August shows the Netherlands, with imports totaling 70.8 billion cubic feet of LNG, was the most popular destination for U.S. exporters during the month.
Egypt, with imports of 57.0 billion cubic feet, was the second most popular destination for U.S. LNG in August, followed by Germany, Italy, Spain, France, and South Korea, according to DOE data for August, the last month for which information is available.
Japan imported 10.5 billion cubic feet of American LNG in August, making it the 15th most popular destination for U.S. exporters during the month.
