The United States became the world’s largest exporter of liquefied natural gas (LNG) in the first half of 2022, according to data from CEDIGAZ. Compared to the second half of 2021, US LNG exports increased by 12% in the first half of 2022, averaging 11.2 billion cubic meters per day (Bcf/d). US LNG exports continued to grow for three reasons – increased LNG export capacity, increased international natural gas and LNG prices, and increased global demand, particularly in Europe.
According to our estimates, installed US LNG export capacity has expanded by 1.9 Bcf/d nominal (2.1 Bcf/d peak) since November 2021. the Calcasieu Pass LNG, and increased LNG production capacity at the Sabine Pass and Corpus Christi LNG facilities . As of July 2022, we estimate that US LNG liquefaction capacity averaged 11.4 Bcf/d, with a shorter-term peak capacity of 13.9 Bcf/d.
International natural gas and LNG prices hit record highs in the last quarter of 2021 and the first half of 2022. Prices in the Title Transfer Facility (TTF) in the Netherlands have been trading at record highs since October 2021. units (MMBtu) during the first half of 2022. LNG spot prices in Asia are also high, averaging $29.50/MMBtu during the same period.
Since the end of last year, countries in Europe have been importing more and more LNG to compensate for lower pipeline imports from Russia and to fill historically low natural gas storage inventories. LNG imports in the EU and Great Britain increased by 63% in the first half of 2022 and averaged 14.8 Bcf/d.
Most US LNG exports went to the EU and the UK in the first five months of this year, accounting for 71%, or 8.2 Bcf/d, of total US LNG exports. Similar to 2021, the United States sent the most LNG to the EU and the United Kingdom in the first half of the year, providing 47% of the 14.8 Bcf/d of total LNG imports from Europe, followed by Qatar with 15%, Russia with 14%, and four African countries combined at 17%.
In June, the United States exported 11% less LNG than the 11.4 Bcf/d average exports in the first five months of 2022, mainly as a result of an unplanned outage at the Freeport LNG export facility. Freeport LNG is expected to resume partial liquefaction operations in early October 2022.
Peak capacity utilization at the seven US LNG export facilities averaged 87% in the first half of 2022, largely before the Freeport LNG outage, which is similar to utilization on average during 2021.
Main contributor: Victoria Zaretskaya
