U.S. liquefied natural gas (LNG) exports dropped to their second-lowest monthly level so far this year in June, as maintenance at key export facilities temporarily cut output, according to preliminary data from LSEG.
The world’s leading LNG exporter shipped 8.4 million metric tons (MT) of LNG in June, down from 8.9 MT in May and well below April’s record of 9.3 MT.
Seasonal Maintenance Hits Production
The decline was primarily driven by planned maintenance work at some of the nation’s biggest LNG terminals. Cheniere Energy’s Sabine Pass facility in Louisiana, with capacity of 4.5 billion cubic feet per day (bcfd), and its 2.4 bcfd Corpus Christi plant in Texas, both saw reduced output. Cameron LNG’s 2.0 bcfd facility in Louisiana also underwent maintenance, while Freeport LNG in Texas faced unplanned unit outages at its 2.1 bcfd plant.
By late June, maintenance at Sabine Pass and Cameron LNG had largely been completed, with both plants returning to near full production levels, according to LSEG data.
Europe Remains Primary Buyer Despite Price Signals
Europe continued to dominate as the top destination for U.S. LNG, taking 5.53 MT—or about 66%—of American exports in June. That was slightly lower than May’s 68%, but still reflected Europe's ongoing demand despite price changes.
In June, the Asian benchmark Japan Korea Marker rose to $12.90 per mmBtu from $11.83 in May, while Europe’s Title Transfer Facility benchmark increased to $12.38 per mmBtu from $11.68. Despite this modest price advantage in Asia, shipments to the region remained muted, with U.S. exporters sending 1.56 MT or 19% of total exports there in June, down from 1.88 MT or 21% in May.
Latin American Demand on the Rise
Meanwhile, U.S. LNG shipments to Latin America increased noticeably. Cooler winter weather and domestic gas shortages in Argentina boosted demand, with the U.S. sending 0.81 MT—or 10% of its total LNG exports—to the region in June, up from just over 7% in May.
Argentina alone purchased about 340,000 tons of LNG in June, sourcing roughly one-third of that from the U.S. and the rest from Trinidad and Tobago, which supplied about 230,000 tons.
U.S. exporters also demonstrated flexibility by delivering cargoes to markets as far afield as Egypt and South Africa during the month.
Competition from Canada’s First Cargo
June also marked a historic milestone for North American LNG, as Train 1 of LNG Canada’s 14 mtpa facility in Kitimat, British Columbia, shipped its first cargo on the final day of the month. Thanks to its shorter shipping distance to Asia, LNG Canada is poised to compete directly with Gulf Coast exporters in the critical Asian market.
Despite June’s dip in volumes, the outlook for U.S. LNG remains strong. Several new long-term deals were announced in June between U.S. LNG developers and Asian buyers, signaling robust demand growth over the next five years.
