A near-record number of liquefied natural gas (LNG) tankers overwhelm Gulf Coast export terminals as U.S. supercooled fuel exports surge at a record pace.
Reuters reported that liquefaction facilities on the Gulf Coast are operating near full capacity thanks to strong demand, especially from Europe, which is currently trying to replenish its depleted gas reserves.
Citing data from Refinitiv Eikon, Reuters writes that about 27 LNG tankers were either on their way to export terminals on the Gulf Coast or already there. As a result, LNG exports could reach 6.47 million tons this month, according to Kpler, beating the previous monthly record of 6.3 million tons set in January.
Over the past three months, Europe has become the largest US market for liquefied natural gas, as concerns about geopolitical tensions around Ukraine have prompted the EU to look for alternatives to Russian gas in case Moscow turns off the taps, although Moscow has repeatedly said this. he has no such plans.
As a result of a sharp increase in demand for US LNG, the country has overtaken Qatar as the world’s largest exporter of this commodity. US LNG is one of the European Union’s preferred alternatives to Russian pipeline gas, whose consumption the Union is trying to cut by two-thirds within a year.
Last week, the chief executive of EQT, the largest US natural gas producer, said the United States could easily replace Russian gas, which accounted for 45% of all EU gas imports last year.
“We have the ability to do more, the will to do more,” EQT’s Toby Rice told the BBC, estimating that there is enough gas in the United States to quadruple current production by 2030.
However, environmentalists were quick to protest against the increase in LNG exports: a coalition of more than a hundred organizations called on banks to stop funding LNG export terminal projects. According to a Reuters report, protests by environmentalists have led to an interagency review of ways to increase LNG exports to Europe has been postponed.
Charles Kennedy for Oilprice.com
More popular articles on Oilprice.com: