U.S. Natural Gas Exports at Record High During First Half of 2023: EIA

U.S. exports of natural gas averaged 20.4 billion cubic feet per day (Bcf/d) during the first half of 2023, up 4 percent compared to the same period in 2022, according to an Oct. 4 report by the U.S. Energy Information Administration. The increase in U.S. gas exports can be attributed to the continued growth in liquified natural gas (LNG) and firm exports by pipeline to Canada and Mexico. The U.S. has evolved into a net natural gas exporter since 2017, having been an importer for six decades.

Despite the U.S. being a natural gas exporter, pipeline gas imports remain significant to the U.S. energy requirements.  U.S. natural gas imports largely come from Canada and help the U.S. manage seasonal variations in gas consumption, particularly in the peak in January and February.

U.S. LNG exports averaged 11.6 Bcf/d during the first half of 2023, up by 0.5 Bcf/d or 4 percent compared to the same period in 2022. The increase can be attributed to a number of reasons including higher LNG export capacity, elevated global natural gas, and LNG prices, and firm global demand, most notably in Asia. LNG exports from the Lower 48 states began in February 2016. Previously, the U.S. had only exported LNG from Alaska and occasionally re-exported LNG from the Lower 48 import terminals.

U.S. natural gas pipeline exports averaged 8.8 Bcf/d during the first half of 2023, up by 0.3 Bcf/d or 4 percent compared to the same period in 2022. Gas exports to Mexico accounted for 66 percent of total U.S. pipeline exports for the first six months of 2023. Mexican demand for U.S. gas has increased, in line with higher electric power demand. Moreover, gas exports from West Texas to Mexico have risen since 2019, due to the increasing number of pipelines in Central and Southwest Mexico.

Natural gas markets have become more interconnected over the last few years, due to a structural shift in the market and this has impacted trading dynamics. The Russian invasion of Ukraine has contributed to the demand for U.S. LNG and given shippers a financial incentive to export.