In July, U.S. LNG exports to Asia continued to favor the longer Cape of Good Hope route over the Panama Canal, despite the latter easing restrictions.
A record 49 U.S. LNG cargoes traveled via the Cape, up from 37 in June, marking the highest monthly total since 2010. This trend has persisted throughout 2024, with only one Asia-bound LNG cargo transiting the Panama Canal in July.
Asia continues to be the favored destination for US LNG, accounting for 43% of total flexible exports last month compared to July 2023’s 31%. That said, European LNG prices have rallied hard recently, with the front-month Dutch TTF contract having risen from $10/MMBtu to their current price of $12.79/MMBtu in just two weeks.
While storage in Europe is effectively full, the region’s total capacity for stored gas remains small relative to potential winter demand. As a result, concerns over winter supply security have helped drive prices up.
Source: Gelber & Associates
