Snapshot: US LNG exports to LatAm

The US set a new milestone in its push to expand capacity to send natural gas abroad with the start of commercial operations at Cameron LNG’s first train of the liquefaction-export project.

The US Energy Information Agency (EIA) highlights that the country has been exporting more gas than it imports since 2017, and that exports will increase as new LNG facilities come online, such as Elba Island LNG and Freeport LNG which are due to enter service in the coming months.

EIA data shows that the US exported 633Tf3 in the first five months of 2019, up 51% from January-May last year and a 145% jump from the same period in 2017, amid the nation’s shale gas boom.

Among the regions driving offtake is Latin America and the Caribbean (LAC), where changing gas market dynamics – coupled with geographic proximity – are opening new doors for US LNG, but also may signal a shift away from this gas for some countries.

LAC – not including Puerto Rico – accounted for 21% or 134Tf3 of January-May US LNG exports, compared with 127Tf3 and 95Tf3 delivered to the region in the first five months of 2018 and 2017, respectively.

The bulk of US LNG landed in LAC in the five months went to Mexico (44%), Chile (21.3%), Argentina (9.78%) and Brazil (9.42%).

It is worth noting that US LNG shipments to Mexico have dipped due in part to the startup of new pipeline infrastructure between the countries, while deliveries to Chile and Brazil have increased and exports to Argentina remain stable.

In the case of Chile, the ongoing concern is that Argentina will not be able to commit to stable, non-interruptible gas supply, as it begins exporting LNG, which may displace US gas. Brazil also could see a gas supply shift with the expected injection from pre-salt developments.

Nevertheless, new markets are emerging for US LNG in the region as governments and stakeholders migrate to cleaner, more cost-effective fuels, in particular for power generation. EIA metrics reveal that Jamaica recorded its first imports of US LNG this January-May and exports to Panama almost doubled.

Another growing market is Colombia which experienced a 267% jump in US LNG imports in the first five months of 2019 to help cover a gas shortfall.

In the five months, the US also exported LNG to the Bahamas, Barbados, the Dominican Republic and Haiti.

For a look at recent LNG content from the region, visit the following links:

Codelco sells its participation in LNG Mejillones

Is it better to export LNG from Vaca Muerta via Argentina or Chile?

Argentine LNG export strategy boosted by EU-Mercosur deal

The challenge facing Colombia's 2nd LNG terminal

Brazil’s Gás Natural Açu cleared to import LNG

Petrobras cleared to export LNG

Argentina’s planned LNG exports have a favorable market

LNG on Suriname energy diversification radar

NEW REPORT - LNG in Latin America: A new focus

Chile watchdog approves US$650mn LNG project

Financing search widens for El Salvador LNG-to-power project

Pictured: Partial view of Cameron LNG facility (CREDIT: Cameron LNG)

Pie chart: EIA