Natural gas demand picking up

[dan_s]

On September 11 Reuters reported U.S. liquefied natural gas exports were on track to increase for a second month in a row in September for the first time since hitting a record high in January as rising global gas prices prompted buyers to reverse some cargo cancellations. Gas prices surged over 60% in Europe and Asia last month, causing U.S. LNG exports to jump from a 21-month low of 3.1 Bcf/d in July to 3.7 Bcf/d in August and an expected 3.8 Bcf/d in September, according to federal data. Prior to that, U.S. exports fell every month from March to July as coronavirus demand destruction caused prices to collapse and buyers to cancel cargoes.

Several U.S. LNG export plants stepped up to supply more of the super-cooled fuel even though Cameron LNG's facility in Louisiana remains shut due to lingering power problems after Hurricane Laura slammed into the Gulf Coast in late August. Cheniere Energy (LNG-NC) boosted exports from Corpus Christi in Texas, and this week sent out the first cargo from Sabine Pass in Louisiana since shutting the plant just before Laura hit. Unlike Cameron, Sabine has on-site generators capable of producing much of its power supply. Exports also increased at Freeport LNG's plant in Texas and Kinder Morgan Inc's (KMI-NC) Elba Island in Georgia.