U.S. LNG Exports Surge to Europe Amid High Demand

In January, the United States exported a record volume of liquefied natural gas (LNG) to Europe, driven by a surge in demand and elevated prices for the superchilled gas.

Key Findings

* Nearly 90% of U.S. LNG exports went to Europe.
* Total exports reached 8.46 million metric tonnes (MT), close to the December 2023 record.
* Europe accounted for 7.25 MT (86%) of exports, significantly higher than December's 5.84 MT (69%).

Global LNG Market Dynamics

The U.S. remains the world's top LNG exporter and has become a crucial supplier to Europe after Russia's invasion of Ukraine. U.S. LNG contracts allow for flexible redirection of cargoes based on market conditions.

In January, at least six LNG shipments bound for Asia were diverted to Europe due to elevated prices and weaker Asian demand.

European Gas Prices Boost U.S. Exports

European benchmark gas prices at the Dutch Title Transfer Facility (TTF) averaged $14.67 per mmBtu in January, up from $13.82 in December.

In contrast, Asian benchmark prices on the Japanese Korean marker(JKM) averaged $14.166 per mmBtu, a slight increase from December's $14.096.

Export Record Falls Short

U.S. LNG exports were anticipated to reach a new record in January, bolstered by the commissioning of Venture Global's Plaquemines LNG plant in Louisiana. However, lower production at Freeport LNG in Texas offset this increase.

Freeports intermittent operations limited its full export capacity.

Asia and Latin America Demand Declines

As U.S. exports shifted towards Europe, LNG sales to Asia fell to 0.79 MT from December's 2.1 MT. Similarly, Latin American exports decreased to 0.21 MT from 0.58 MT.

Egypt Emerges as New Market

Three LNG cargoes totaling 0.21 MT were shipped from the U.S. to Egypt in January, marking the country's emergence as a potential LNG import destination.