US liquefied natural gas (LNG) exports are expected to reach a record high this month, providing some relief for prices in Asia and Europe as winter arrives.

According to ship-tracking data from Kpler, the US is set to export 10.7 million tons of LNG in November. This marks an increase of about 40% compared to the same month last year.

This extra supply could help to lower gas prices in Europe and Asia over the coming months, even as colder weather typically increases the demand for heating fuel. European gas futures recently dropped to their lowest level in over a year, while prices in Asia, which has the biggest importers, are currently at their lowest point in about a month.

New projects are expected to continuously increase US LNG exports for years. By the end of the decade, output could double. The Plaquemines facility is currently increasing its production, while the Golden Pass facility may ship its first cargo before winter ends.

Other News:

• Gail has partially awarded a tender to swap two LNG cargoes from the US for supplies loading between January and March in exchange for January-February shipments to India.
• Kansai Electric, a Japanese utility company, has bought an LNG cargo on a Delivered Ex Ship (DES) basis for early April delivery to Japan.
• The Electricity Generating Authority of Thailand purchased an LNG cargo on a DES basis for delivery to Thailand on January 28-30.
• Indian Oil Corp. has secured an LNG shipment on a DES basis for January 11 delivery to the Dahej terminal at around $10.4/mmbtu.
• The Arctic Vostok tanker, carrying a cargo from the US-sanctioned Arctic LNG 2 export plant in Russia, departed the Beihai import terminal in southern China on Thursday after unloading.
• Centrica Energy has signed a 15-year agreement to supply liquefied natural gas to Honduras.

Key Drivers:

• China's 30-day average for LNG imports was 200,000 tons on November 26, which is about 5.7% lower than last year, according to ship-tracking data.
• European gas storage levels were approximately 77% full on November 26, compared to a five-year seasonal average of around 88%.
• Europe's 30-day average for LNG imports was 243,000 tons per day on November 26, which is 50% higher than the five-year seasonal average.
• Estimated flows to all US export terminals were around 18.5 billion cubic feet per day on November 26, an increase of 8.4% week over week, according to BNEF.