Maintenance cuts US LNG exports in June

US LNG exports fell by around 1mn t on the month in June as planned maintenance and unscheduled downtime cut into production.

Aggregate loadings from the country's six operational liquefaction facilities were around 5.97mn t in June, judging by vessel size, down from 7mn t in May although still much higher than 2.46mn t a year earlier, when combined capacity was lower and contractual cancellations cut loadings throughout much of last summer.

All six terminals — with the exception of Texas' 15mn t/yr Corpus Christi project — loaded less LNG in June than in May. Feedgas deliveries rising from mid-June resulted in exports rising to around 1.36mn t last month from 1.22mn t in May. Operator Cheniere brought the third train at Corpus Christi on line in late March.

By contrast, exports from the firm's 25mn t/yr Sabine Pass facility fell in June, as successive maintenance work trimmed feedgas inflows and curtailed liquefaction.

Loadings from the 15mn t/yr Cameron LNG facility also slipped, probably as a result of production problems at its third train in the first half of the month, which resulted in a shutdown of the unit that lasted around a week. Feedgas flows also remained slightly lower than in previous months through the rest of June, which may have further weighed on production at the terminal.

The 15mn t/yr Freeport LNG terminal loaded slightly less LNG in June than a month earlier, despite multiple production trips that led to downtime affecting either single trains or all three units at the project. The Texas-based facility secured permission from the US' Federal Energy Regulatory Commission (Ferc) to change its authorised production capacity from a daily limit to an annual threshold, allowing it to ramp up production following downtime. Freeport has also requested permission from Ferc to lift this annual threshold to 870bn ft³/yr (19.1mn t/yr) from 780bn ft³/yr.

Panama transits rise

US exports to Pacific markets through the Panama Canal rose to a seven-month high in June, matching the record of 33 cargoes set in November even as loadings slipped to 80 cargoes from 83.

The strong demand for Panama transit could have been because of a backwardation in near-term northeast Asian delivered prices, which increased the incentive to shorten journeys.

Quick Panama demand led to delays at the waterway later in June, with queues of up to six laden carriers waiting to head in to the Pacific basin. These delays have eased in the first week of July, with just three carriers awaiting transit today.

US LNG could also be faced with greater competition for Panama transit from cargoes loaded at Trinidad and Tobago, which is set to send its first cargo through the canal in recent months, with the 174,000m³ BW Helios declaring for arrival at Panama tomorrow after loading at Point Fortin on 5 July. But LNG production from Trinidad has fallen steadily in recent months because of lower feedgas availability, with the first liquefaction train at the country's 14.8mn t/yr Atlantic LNG complex undergoing an indefinite turnaround this year. The facility loaded 518,000t last month, down from 1.01mn t a year earlier, according to Vortexa.

By Samuel Good