Daily Energy Report
Global LNG exports, Europe’s gas use down, Russian diesel exports, China/Vietnam solar exports, ESG dying, Coal hard to kill, Kuwait upstream growth, Gas demand, Red Sea disruption, and more.
Chart of the Day: Global LNG Exports Declined in April
Summary
Figure (1) above shows trends in global LNG exports by source. LNG exports were on declining trend since last December, mostly because of maintenance, which we highlighted in a couple of reports. Global LNG exports declined from 35.82 mt in March to 33.42 mt in April, according to Kpler.
The decline came from all major producers like the US, Qatar, and Australia, but the decline was more pronounced in April in the US.
EOA’s Main Takeaway
Most maintenance in US LNG plants takes place in April, May, and June when the demand for LNG is generally low. The decline in US LNG exports came mostly from Freeport LNG as trains 1 & 2 are shut until May. But now the situation is changing as ships queue at the Freeport LNG plant in Texas as full operations resume.
Here are a few news stories on the subject:
Cheniere expects reduced maintenance outages at Sabine Pass, Corpus Christi LNG terminals
Freeport LNG Maintenance Depresses U.S. Exports
Hedge Funds Turn to AI, Satellites to Track Vital US Gas Plant
Story of the Day
Gas Exporting Countries Forum (GECF): Major Decrease in Europe’s Gas Consumption
Summary
The GECF released its monthly gas report earlier today. It stated that April’s gas consumption in the EU declined by 12% YoY. It attributed most of the decline to unusually warm weather as Europe experienced its second warmest April on record.
Meanwhile, US gas consumption increased by 2.4% YoY as the shift from coal to gas continued in the power sector. Apparent gas demand in China increased by 11% YoY, mostly because of cold weather in Northern China.
Despite the announced gas production cut, US gas production increased in April by 3% YoY. Gas production in Europe declined by 2% despite the increase in Norwegian gas production. China’s gas production increased by 6% YoY.
On prices, the report stated: “Gas and LNG spot prices in Europe and Asia experienced an increase in April 2024. The average TTF spot price stood at $9.1/MMBtu, marking a 7% m-o-m increase, while the average NEA spot LNG price rose by 9% m-o-m to $9.8/MMBtu. Meanwhile, in the US, Henry Hub prices continued to decline, averaging $1.6/MMBtu. Although overall gas market fundamentals are likely to remain relatively balanced in the upcoming months, any further escalation of geopolitical tensions, or extreme weather conditions could introduce volatility into spot prices.”