(Reuters) – U.S. liquefied natural gas exports hit a monthly high for the second consecutive month in November, led by cooler weather and solid production from the country’s two largest producers, preliminary data from financial firm LSEG showed on Monday. The United States, the world’s largest LNG exporter, shipped 10.9 million tonnes last month, up from 10.1 million tonnes in October, despite having one less day in the month, according to LSEG data.
Cheniere Energy, the largest U.S. LNG exporter, increased shipments from its two plants in Texas to 4.6 mmt from 4.1 mmt in October. Venture Global LNG, the second largest exporter, held steady at 3 mmt in November, according to LSEG ship tracking data.
LNG plants typically operate more efficiently in cooler conditions. Average temperatures along the Gulf Coast in November were about 8 degrees Fahrenheit cooler than in October, according to the National Weather Service.
A surge in LNG exports pushed U.S. liquefied natural gas demand to a record level of 18 billion cubic feet per day in November. Last week, daily demand exceeded 19 bcfd for the first time. Henry Hub gas prices averaged $4.47 per mmBtu in November, up from $3.36 in October.
Europe remains a major market
Europe received 70% (7.5 million tonnes) of US LNG exports in November, up from 69% in October. Turkey has emerged as a major buyer, taking over 12 cargoes (totaling 0.9 mmt), up from just one cargo in October.
As spot demand in Northeast Asia remained sluggish, exports to Asia decreased from 1.96 million tons in October to 1.75 million tons, 16% of the total. Latin America bought 0.66 mmt, slightly up from October, while Egypt bought 0.84 mmt amid domestic supply issues.
The average price for European benchmark Dutch title transfer facilities was $10.40 per million British thermal units in November, down from $10.88 in October. The Japan-Korea marker averaged $11.25, up from $11.11.
“Arbitrage opportunities for U.S. LNG cargoes bound for Asia via the Cape of Good Hope remain closed, which will continue to allow flexible U.S. cargoes to flow into northwest Europe,” LSEG said in a note.
Reporting by Curtis Williams in Houston. Editing: Nathan Crooks and Paul Simao
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