Surge in US LNG Exports to India Amidst Global Market Shifts

US LNG exports to India rose to 45,269 million cubic feet in May 2024. Prices dropped from $6.57 to $5.32 per thousand cubic feet. These changes reflect global market dynamics, significant shifts in trade patterns, and disruptions like those at Freeport LNG export terminal impacting global supply chains.

The volume of U.S. LNG exports to India peaked at 45,269 million cubic feet in May 2024, according to the U.S. Energy Information Administration (EIA). Recent data highlights significant developments in U.S. liquefied natural gas (LNG) exports to India.

The cost of U.S. LNG shipped to India has seen a marked decrease in the first half of 2024, dropping from $6.57 per thousand cubic feet in January to $5.32 in May. This price reduction mirrors broader global LNG market trends and may influence India's future energy procurement strategies.

According to S&P Global Commodity Insights, India has become a significant destination for U.S. LNG amid rising demand driven by unexpectedly high temperatures in the Asia-Pacific region. In June, alongside China and South Korea, India was among the top destinations for U.S. LNG imports.

India, along with the Netherlands and Argentina, each received eight LNG cargoes, a shift as European destinations like Turkey saw reduced imports, receiving only 34 cargoes in July. Escalating concerns in global supply, including maintenance in Norway, tensions in the Middle East, and disruptions in Australia, have impacted U.S. LNG exports.

The drop in European imports and rising shipments to the Asia-Pacific underscore shifting global LNG trade dynamics. Despite a surge in regional demand, the market faced disrupted supply chains in June due to Freeport LNG terminal shutdowns ahead of Hurricane Beryl.

As August began, global LNG markets remained bearish. European storage levels are high, and buying interest from South Asia and China remains low. However, Atlantic basin prices increased due to supply concerns, with the September JKM benchmark price for Northeast Asia assessed at $12.915/MMBtu by Platts, a 0.5% rise from the previous day.