U.S. LNG exports hold up despite a slight dip in feedstock

Nov. 11 (UPI) -- The amount of natural gas delivered to terminals that can export it in liquid form declined by about 3.5% from week-ago levels, the U.S. Energy Department reported, though exports held up.

The U.S. Energy Information Administration, the statistical arm of the Energy Department, reported on Thursday that total gas deliveries to export facilities for liquefied natural gas averaged 11.5 billion cubic feet (Bcf/d) during the week ending Nov. 2, about 0.4 Bcf/d less than the prior week.

That, however, meant little for overall exports. There were 21 vessels loaded with LNG sourced from U.S. natural gas supplies that left export terminals during the week. Both the number of vessels and the volume of product carried, 78 billion cubic feet, was unchanged from the week prior.

And its relatively on par with year-ago levels. There were 22 vessels laden with LNG that left U.S. exports during the similar week in 2021 with a combined volume of 80 Bcf.

The United States, meanwhile, is down one export terminal. A June explosion at the Freeport LNG facility in Texas has kept the plant idled, though it could return to service at some point later this month.

U.S. LNG developments are particularly useful for a European economy looking for alternatives to piped gas from Russia. Western powers accuse the Kremlin of using its vast pool of natural resources as a weapon, accusations that only resonated more after Russian military forces invaded Ukraine.

A report published this week from the Texas Independent Producers & Royalty Owners Association, or TIPRO, found 74% of total exports of U.S.-sourced LNG went to Europe during the first half of the year, compared with around 34% during the same period last year.

Federal estimates show total U.S. LNG exports are on pace to increase by around 13% from this year's average to reach 12.33 Bcf/d on average for 2023.