South Korea is Main US LNG Market in 1H
South Korea was the biggest importer of US LNG during the first half 2018 (1H2018), according to the latest data by US Energy Information Administration. Apart from Mexico, all of the US LNG top importers are in Asia, namely South Korea, China, Japan and India.
According the latest data, South Korea imported 110.41bn ft3 (3.13bn m3) of regasified LNG in 1H2018 compared with 24.58bn ft3 during the same period of last year, a quadruple jump.
The first US LNG supplies under Kogas' 2.8mn mt/yr long-term contract from Cheniere's Sabine Pass plant, signed in 2012, started last year. During the whole of 2017, South Korea imported 130.18bn ft3 of regasified US LNG. In 2016, total imports were just 10.2bn ft3, according to EIA data.
Mexico was the second biggest importer; it imported 105.26bn ft3 of regasified LNG during the six-month period compared with 87.66bn ft3 in 1H2017, an increase of 20%. It was the biggest importer of US LNG last year with imports of 140.32bn ft3. Mexico also imports substantial volumes by pipeline.
China imported 61.92bn ft3 from the US in 1H2018 compared with 17.24bn ft3 in the same period last year, up almost 260%. During the whole of 2017, China imported 103.41bn ft3. However, with recently Beijing imposing a 10% tariff on US LNG, it is expected that Chinese imports may decline in the short-term. The effects of the trade war were already visible in Chinese LNG import figures for June 2018, even before the formal entry into force of the tariff was announced by Beijing. Chinese imports from the US in June fell to 2.92bn ft3 over May 2018 when imports were 10.41bn ft3.
Japan was another big US importer in 1H2018 importing 44.28bn ft3, compared with 28.98bn ft3 in the year-ago period, an increase of almost 53%. In 2017, Japan imported 53.28bn ft3 from the US.
Indian imports of US LNG in 1H2018 already exceeded the amount it imported during the whole of 2017. In 1H2018, the south Asian nation imported 31.51bn ft3 of LNG from the US compared with 10.43bn ft3 in the year ago period. In the whole of 2017, India imported 20.91bn ft3 from the US.
India’s biggest gas marketing firm Gail received the first US LNG cargo under long term contract in March this year. Gail March 30 received the maiden LNG shipment from US that had left from Cheniere Energy's Sabine Pass LNG export plant, Louisiana March 5. The cargo arrived at Gail’s Dabhol terminal aboard Meridian Spirit. Gail has two US LNG deals. One with Sabine Pass Liquefaction for 3.5mn mt/yr from Sabine Pass, supplies from which started in March 2018. It also has a terminal service agreement for booking of 2.3mn mt/yr liquefaction capacity in the Cove Point LNG liquefaction terminal.