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U.S. liquefied natural gas (LNG) exports hit monthly and annual highs in December 2023, according to the latest data. The U.S. exported 91.2 million tonnes of LNG in 2023, surpassing Qatar and Australia to become the world's largest LNG exporter.
The demand for LNG in Europe will remain high in 2023. The photo shows an LNG carrier docking at a European port. (AFP)
Alex Monton, head of research at consulting firm Rapidan Energy Group, said: "There are two main reasons for the increase in US LNG exports, one is that the Freeport LNG plant in Texas has fully reopened, and its output has increased by 6 million tons. Second, the annual output of the Kalkssu Passage facility at the Venture Global LNG plant increased by 3 million mt compared to 2022. ”
According to Reuters, two new LNG projects in the U.S. are coming on stream in 2024: Venture Global LNG's Plaquemines plant in Louisiana and the Golden Pass plant in Texas, a joint venture between ExxonMobil and QatarEnergy. If run at full capacity, the two projects would add another 38 million tonnes of LNG production per year to U.S. LNG production.
Europe remained the main destination for US LNG exports in December, with 5.43 million mt exported. Asia is the second-largest export market for U.S. LNG. According to a report by Bloomberg on the 2nd, cold weather is about to sweep most of Europe, and after a period of warm winter, the region's energy system will be tested. U.S. LNG producers will continue to focus their exports on Europe in 2024 as European benchmark natural gas prices have risen.
Regarding the large sale of LNG by the United States to Europe, Russia's TASS news agency quoted Elnadi, chairman and CEO of Hungarian Oil and Gas Industry Joint Stock Company (MOL), as commenting on the 3rd that the EU's sanctions against Russia have brought losses to European energy companies, but have brought huge profits to the United States. In terms of oil, Europe has become the number one export market for the United States. From 2021 to 2023, U.S. LNG supplies to Europe increased by 170%. The United States has benefited from the abandonment of Russian oil and gas by the European Union, and now the United States is in good shape, while Europe is suffering.
It is worth noting that some EU countries continue to import Russian LNG, and this practice shows no signs of abating. Russia's "Izvestia" reported on the 3rd that in November last year, Russia exported 1.75 million tons of LNG to Europe, a record. From January to July last year, EU countries bought 52% of Russia's total LNG exports. In the first seven months of last year, Russian LNG exports increased by 40% compared to the same period in 2021. As a result, Russia became the second largest supplier of fuel to the European Union, after the United States. France, Belgium and Spain import most of Russia's natural gas.
Another reason for the increase in Russian gas supplies to the European market is the high cost of transportation, which has forced European countries to rely on shorter logistics chains. Against this background, supplies from Qatar have significantly decreased, and supplies from Russia have increased.
Source | Global Times
Audit | Yang Shasha
Edit | Wang Dong
Proofreading | Ren Xiaonan