U.S. LNG Exports Are Surging Despite Jump In Shipping Costs

Despite a 65-percent jump in the cost of U.S. exports of liquefied natural gas to the biggest import market, Asia, American LNG shipments abroad have soared to record highs and are likely to reach new all-time highs later this year. According to estimates from independent energy research firm Rystad Energy, the short-run marginal cost (SRMC) of U.S. LNG exports to the Asian market has risen to about $5.60 per million British thermal units (MMBtu) as of June 2021. That cost is a massive 65-percent higher than in the middle of last year, when LNG…