The natural gas pipeline flows to US LNG exports plants fell to a 20-month low in June as the coronavirus pandemic ravaged global demand and forced buyers to cancel dozens of cargoes. An industry survey showed the gas flows to these plants stood at 4.1 bcfd in June, compared to a record high of 8.7 bcfd in February.
The flows will be likely to fall further, with gas intake by US LNG export plants dropping to an average of 3.1 bcfd so far in June. Liquefaction utilization rates fell to just 32% so far this month, from 85%-90% last year. Analysts doubted that the rates would regain their pre-pandemic levels soon, with some projecting rates to range between 60%-70% over the next several years.
Meanwhile, tanker tracking data showed only five vessels loaded cargoes from the six major US LNG export terminals. Federal data showed 74 vessels carried US LNG cargoes in January, but an independent survey found the number of vessels fell to 50 in May and 31 in June.
