After declining sales to Europe during the second half of 2024, LNG from the U.S. is again in high demand on the continent.
In February, 82 percent of U.S. exports, equivalent to 6.82 million tonnes, went to Europe, Reuters reports. This follows an even higher figure of 7.25 million tonnes, accounting for 86 percent, during the previous month.
Strong prices and persistent cold temperatures help explain the demand push.
The U.S. continues to solidify its position as the world’s largest exporter of the supercooled gas, just a decade or so after entering the market in earnest.
The first two months of 2025 may signal a trend reversal for European imports. In 2024 U.S. deliveries to the continent fell by 18 percent in contrast to supplies from Russia, which surged an equal 18 percent, primarily from the Yamal LNG plant.
Russia set a new record for Arctic deliveries shipping close to 22 million tonnes of LNG via its Northern Sea Route last year.
Meanwhile Chinese imports have hit a five-year low due to weakening demand. The country’s imports stood at 4.5 million tonnes for February according to information by data firm Kpler. The last time China imported at such low levels the country was in the midst of the early days of the Covid pandemic.
Weak Chinese demand further complicates Russian LNG firm Novatek’s attempts to find buyers for sanctioned cargoes from its Arctic LNG 2 plant. Eight loads, picked up between August and October 2024 remain at sea aboard LNG carriers and FSUs, with any buyers yet to materialize.
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