In January, the U.S. exported 117 LNG cargoes, just four short of December’s all-time record despite the disruptions due to the cold weather mid-month. Exports were particularly high in the last three days of the month, with 15 cargoes exported between January 29 and 31, compared to 10 (which is fairly typical) on the three days prior to that. In December and January, the U.S. exported 238 LNG cargoes compared to 196 last year when Freeport was offline, and 202 the year prior to that, which was before Calcasieu Pass began exporting. The boost in exports year-on-year is primarily driven by Freeport’s operations. Freeport exported 37 cargoes in December 2023 and January 2024, compared to zero last year during the outage. The Louisiana export terminals are having a strong winter as well with Cameron, Sabine Pass and Calcasieu Pass taking in record levels of feedgas this winter and exporting more cargoes this year.
Of the 117 cargoes exported in January, 70%, or 82 cargoes, headed to Europe. That’s one cargo more than in December despite lower exports overall. Only 20 U.S. cargoes headed to Asia, down 12 from January 2023 and the lowest level since May. Shipping to Asia remains complicated by Panama Canal restrictions and attacks by Houthi rebels in the Red Sea. The Panama Canal has been restricting traffic because of low water levels since last year. Only nine U.S. LNG tankers a month have traveled via the Panama Canal since the restrictions were imposed, compared to an average of 14 in the months prior to that and well below the all-time high of 34 in June 2021. U.S. vessels are also avoiding the Suez Canal because of Houthi rebel attacks in the Red Sea, leaving the very long trip around the Cape of Good Hope the only option for many U.S. cargoes headed to Asia and heavily incentivizing them to head elsewhere. The U.S. exported 12 cargoes to Latin America in January, which is the highest level since June, and eight more than the same time last year. U.S. exports to Latin America typically peak in the summer, but with European markets amply supplied this winter and limited route options to Asia, Latin America is an attractive option for U.S. LNG.
