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Total US exports from new LNG terminals likely crossed 1 Tcf mark this winter

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Total US exports from new LNG terminals likely crossed 1 Tcf mark this winter

The United States has likely exported more than 1 trillion cubic feet of natural gas from its operating LNG export terminals.

Looking at a combination of government and pipeline data, the U.S. was expected to cross the 1 Tcf mark in February, roughly two years after the country shipped its first cargo from Cheniere Energy Inc.'s Sabine Pass terminal in Louisiana. Roughly half of that chilled gas has headed to Mexico, South Korea and China.

Exports from Sabine Pass facility reached 962.4 Bcf in January, according to the most recent numbers from the U.S. Department of Energy. Sabine Pass in February received about 82 Bcf of natural gas on three pipelines leading to the terminal, and flows to the facility have so far averaged roughly 3.15 Bcf/d in March, according to SNL Energy pipeline flow data.

Two of five storage tanks at Sabine Pass have been removed from service following a leak, bringing the facility's LNG storage capacity down to 10.2 Bcf equivalent.

SNL Image

Sabine Pass was the only major operational LNG export terminal in the U.S. until March 1, when Dominion Energy Inc.'s Cove Point shipped its first cargo from Maryland. LNG tankers that have docked at Sabine Pass have typically carried between 2.9 Bcf and 3.8 Bcf worth of fuel, depending on the size and make of the vessel.

Mexico remains the top destination, receiving 18.5% of volumes exported through January, followed closely by South Korea, which took 16.8% of exports, and China, which was home to 13.9% of LNG produced at Sabine Pass.

Industry observers expect South Korea and China will soon emerge as the top destinations for U.S. LNG. South Korea imported the most from Sabine Pass in January, taking about 21.3 Bcf of gas, followed by China, which received 13.6 Bcf worth of American LNG. Roughly 10.4 Bcf went to Mexico over the month.

South Korea has a 20-year contract for LNG from Sabine Pass, and China, which currently buys U.S. LNG on a spot or short-term basis, recently signed a long-term agreement with Cheniere. Cove Point has contracts with India and Japan.

Experts also say emerging importers, such as Pakistan, will continue to absorb excess volumes as floating storage and regasification units allow smaller countries and companies with less access to credit to dip into the market.

With four other LNG export facilities under construction in the U.S., total export capacity is expected to climb to more than 9 Bcf/d by the end of 2019. Once Cove Point enters commercial service, U.S. LNG export capacity will be more than 3 Bcf/d.