US LNG exports to Asia surged in April as Middle East conflict curtailed supply

By Curtis Williams

HOUSTON, May 1 (Reuters) – U.S. exports of liquefied natural gas to Asia jumped in April, with American producers helping offset reduced supplies from Middle Eastern exporters as the Iran war curtailed output in the region, preliminary ship-tracking data from financial firm LSEG showed.

Nearly a quarter of all U.S. LNG exports went to Asia during the month, marking a sharp increase since the conflict began in late February and underscoring the growing role of the U.S. as a swing supplier amid elevated prices and strained global gas flows.

Shipments to Asia have risen more than 175% since the U.S. and Israel launched strikes on Iran, climbing from about 970,000 metric tons in February to 1.99 million metric tons (MT) in March and 2.71 MT in April, the data show.

Asian spot LNG prices remained elevated. The Japan Korea Marker benchmark averaged $17.92 per million British thermal units (mmBtu) in April, down slightly from $18.27 in March but still about 17% above Europe’s TTF benchmark, which averaged $15.34 per mmBtu in April, down from $17.99 in March.

The increase in U.S. shipments to Asia came even as overall LNG exports slipped from a record high in March, falling to 10.97 MT in April from 11.7 MT in March, LSEG data showed.

The decline was largely due to April having one fewer day than March and delays in cargo loadings. Gas flows to U.S. LNG export plants reached a record 18.8 billion cubic feet per day during April, up from the previous peak of 18.7 bcfd in February, according to LSEG.

The U.S. shipped its first LNG from the Golden Pass terminal in April with a single cargo sent to Belgium. Golden Pass – a joint venture between QatarEnergy and Exxon Mobil [XOM.N] – drew just under 300 million cubic feet per day of gas during the month but exported one cargo, which may have contributed to the gap between record feedgas demand and lower LNG exports.

Europe remained the top destination for U.S. LNG, receiving 6.14 MT, or just under 56% of April exports, according to the data. Egypt was also an active buyer, importing about 710,000 metric tons of U.S. LNG during the month, more than the total 500,000 metric tons shipped to Latin America.

One cargo was delivered to South Africa, a rare destination for U.S. LNG. Nine LNG vessels that departed U.S. ports in April were still seeking buyers, including two anchored near the Suez Canal, ship-tracking data showed. 

(Reporting by Curtis Williams in Houston; Editing by Nathan Crooks and Nia Williams)