EIA: US became world’s largest LNG exporter first-half 2022

July 25, 2022
The United States became the world’s largest LNG exporter in first-half 2022, the US Energy Information Administration said July 25 citing CEDIGAZ data.

The United States became the world’s largest liquefied natural gas (LNG) exporter in first-half 2022, the US Energy Information Administration said July 25 citing CEDIGAZ data.

Compared with second-half 2021, US LNG exports increased by 12% in first-half 2022, averaging 11.2 bcfd. US LNG exports continued to grow due to increased LNG export capacity, increased international natural gas and LNG prices, and increased global demand, particularly in Europe, EIA said.

Installed US LNG export capacity has expanded by 1.9 bcfd nominal (2.1 bcfd peak) since November 2021, according to EIA estimates. Capacity additions include a sixth train at Sabine Pass LNG, 18 new mid-scale liquefaction trains at Calcasieu Pass LNG, and increased LNG production capacity at Sabine Pass and Corpus Christi LNG infrastructure, the agency said. As of July 2022, EIA estimates US LNG liquefaction capacity averaged 11.4 bcfd, with a shorter-term peak capacity of 13.9 bcfd.

The agency said international natural gas and LNG prices hit record highs in fourth-quarter 2021 and first-half 2022. Prices at the Title Transfer Facility (TTF) in the Netherlands have been trading at record highs since October 2021. TTF averaged $30.94/MMBtu during this year’s first half. LNG spot prices in Asia have also been high, averaging $29.50/MMBtu during the same period.

Since end 2021, European countries have increasingly imported more LNG to compensate for lower pipeline imports from Russia and to fill historically low natural gas storage inventories, EIA said. LNG imports in the EU and UK increased by 63% during first-half 2022 to average 14.8 bcfd, it said.

Most US LNG exports went to the EU and the UK during the first 5 months of 2022, accounting for 71%, or 8.2 bcfd, of total US LNG exports, according to EIA data. Similar to 2021, the US sent the most LNG to the EU and UK during the first half of the year, providing 47% of the 14.8 bcfd of Europe's total LNG imports, followed by Qatar at 15%, and Russia at 14%, and four African countries combined at 17%.

In June, the US exported 11% less LNG than the 11.4 bcfd average exports during the first 5 months of 2022, mainly as a result of an unplanned outage at Freeport LNG. The plant is expected to resume partial liquefaction operations in early October 2022.

Utilization of the peak capacity at the seven US LNG export plants averaged 87% during first-half 2022, mainly before the Freeport LNG outage, which is similar to the utilization on average during 2021, EIA said.