U.S. LNG exports are climbing as the impact from spring maintenance work eases. In May the U.S. exported 116 total cargoes, up 22 cargoes from the previous month with less maintenance impact in May than there was in April. Freeport terminal was completely offline for several weeks in April and had only one train operational for the rest of the month but returned to full operations in early May. Cameron LNG had one train offline for most of May, only returning to full service at the end of the month, meaning that exports will continue to climb this summer as the maintenance impact dwindles. The U.S. will likely see record LNG exports later this year as commissioning work at Plaquemines and Corpus Christi Stage III begin.
Additionally, LNG exports from the U.S. to Asia are on the rise. In May, the U.S. exported 50 cargoes to Asia, the highest number of cargoes since early 2021 despite the current difficulties in shipping to Asia. The overwhelming majority of cargoes to Asia are traveling via the longest route from the U.S. to Asia, around the Cape of Good Hope because of Houthi rebels in the Red Sea limiting travel through the Suez Canal and low water conditions severely limiting traffic through the Panama Canal. Only one U.S. LNG cargo has been transported through the Suez Canal this year and only two cargoes per month have travelled via the Panama Canal since February. Despite the higher than typical cost of shipping to Asia because of the longer route, high demand in Asia combined with lackluster demand in Europe has shifted U.S. cargo destinations back towards Asia this spring.
