US LNG Exports On Track For Another Record Year -- June 10, 2021

 US LNG exports: on track for another record high this year. Link here to Tsvetana Paraskova.

U.S. exports of liquefied natural gas (LNG) are set to surge this year from the already record levels in 2020 as demand in Asia and Europe is high, even in the off-peak season. All-time high LNG exports from America, coupled with rising domestic natural gas consumption outside of the power sector, are set to keep the U.S. benchmark, the Henry Hub spot price, averaging above $3 per million British thermal units (MMBtu) this year. This would be more than $1/MMBtu above last year’s average price of just $2.03/MMBtu, the Energy Information Administration said in its June Short-Term Energy Outlook (STEO) this week.

Recovering natural gas consumption around the world and higher than usual demand for replenishing low gas inventories in Asia and Europe have kept LNG prices in these key importing LNG regions high after the end of the winter heating season and ahead of the peak summer demand season.

Economic recovery and a rebound in LNG demand in the world’s largest LNG importing region, Asia, are set to keep spot regional prices around current levels of $10/MMBtu for most of the summer, which could be the highest price for this time of the year in seven years.

Yesterday, SRE jumped 3%; jumped almost $4. I could not find a reason why the jump in price. This is most likely the reason -- the EIA's June Short-Term Energy Outlook released this week. From June 9, 2021:  

Market:

SRE, a company I have followed "forever," jumped $4 today, almost 3%; from $135 to almost $140. I haven't seen a reason why yet (I last looked six hours ago) on a day the market was generally flat to negative. SRE "is a $124-stock" as far as I'm concerned. 

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