US LNG Exports to India Surge in May 2024 Amid Global Market Shifts
In May 2024, the volume of US liquefied natural gas (LNG) exports to India reached 45,269 million cubic feet, according to the US Energy Information Administration (EIA). The price of US LNG exports to India decreased from USD 6.57 per thousand cubic feet in January 2024 to USD 5.32 per thousand cubic feet in May 2024. This price drop reflects broader trends in the global LNG market and may influence India’s future energy procurement strategies.
India has been a significant destination for US LNG, especially due to hotter-than-expected temperatures driving up demand in the Asia-Pacific region. In June, India was among the top destinations for US LNG, highlighting its crucial role in the regional energy market. In July, China and South Korea were the top destinations, each receiving 11 cargoes, while India, the Netherlands, and Argentina each received eight cargoes. European destinations, including Turkey, saw a drop in US LNG imports, receiving only 34 cargoes in July.
The increase in US LNG prices comes amidst global supply concerns, including maintenance issues in Norway, tensions in the Middle East, and supply disruptions in Australia. The decline in US LNG cargoes to Europe and increased shipments to the Asia-Pacific region illustrate shifting global LNG trade patterns. The Pacific Basin’s rising demand, particularly in Southeast Asia, has been a significant factor in this trend.
Despite the surge in regional demand, global LNG market fundamentals have been largely bearish as August began. European storage levels remain robust, and buying interest from South Asia and China has been subdued. However, supply concerns have driven up prices in the Atlantic basin. For instance, Platts assessed the September JKM benchmark price for LNG delivered to Northeast Asia at USD 12.915/MMBtu on August 2, a 0.5% increase from the previous day.
Doubts Revealed
LNG -: LNG stands for Liquefied Natural Gas. It’s natural gas that has been cooled down to liquid form for easier storage and transport.
million cubic feet -: A million cubic feet is a way to measure large amounts of gas. Imagine a cube that is 1 foot on each side; now imagine a million of those cubes.
USD -: USD stands for United States Dollar, which is the currency used in the United States.
Hurricane Beryl -: A hurricane is a very strong storm with heavy rain and strong winds. Hurricane Beryl is the name of one such storm that affected the global LNG supply.
bearish -: In finance, ‘bearish’ means that prices are expected to go down. So, a bearish market means people think prices will drop.
