US Gas Deliveries for Export Down 60% Since March: EIA
After reaching a record 9.8bn ft3/day in March, US natural gas deliveries to export facilities fell to less than 4bn ft3/day in June, the US Energy Information Administration (EIA) said June 23, citing data compiled by IHS Markit.
A mild winter – which built natural gas storage in both Europe and North America to near record levels – and economic measures to limit the Covid-19 pandemic have combined to push global natural gas demand lower, the EIA said, limiting the economic viability of US LNG exports.
“Trade press reports indicate that more than 70 cargoes were cancelled for June and July deliveries, and more than 40 cargoes were canceled for August deliveries,” the EIA said. “In comparison, 74 cargoes were exported from the US in January 2020.”
The agency is forecasting that US gas deliveries for export will fall to a low of 3.2bn ft3/day in July, but will increase in each of the remaining months of 2020.