Maguire: US LNG exports reach new heights due to strong European demand
The U.S. has exported more than 20% of its LNG this year compared to the same period last year, mainly due to purchases from European nations. These countries accounted for three-quarters of all U.S. orders.
According to Kpler (a trade intelligence firm), the total U.S. LNG shipments from January to April reached 34.6 million tons. This was by far, the highest volume ever recorded for this period.
The United States exported 26.5 million tonnes or 77% of its total volume to European countries.
The European purchases were up by 49% compared to the first four months in 2024. This suggests that European gas traders and users were trying at least partially to appease U.S. president Trump by buying up U.S. cargoes while tariff negotiations were underway.
Imports of LNG are likely to be boosted by the highest European gas-fired electricity generation total in four year during the first quarter of 2025.
Europe's low gas inventories, which are around 33% lower than a year ago, likely also fueled the strong LNG appetite. This will continue to be a major driver of regional LNG interest in the months to come.
Top Destinations
France, United Kingdom, and Netherlands were the three top buyers of U.S. LNG from January to April. Together, they accounted for almost 35% of the total purchases.
France imported 4.8 million tonnes of U.S. goods from January to April, the highest ever recorded. The UK and Netherlands, however, saw volumes slightly lower than previous records.
Spain, Italy, and Poland were also major buyers in Europe. They all increased gas-fired electricity production during the first quarter 2025 as compared to 2024.
Kpler data revealed that Germany, Belgium and Greece were also notable European buyers.
In the months to come, Europe's gas storage and utility operators are likely to continue buying gas in order replenish their stockpiles in what is typically the slowest gas usage period on the continent.
The majority of purchases will be made from pipelined supplies. These are significantly cheaper than LNG cargoes.
The power generation industry will continue to purchase LNG for their spot needs, as they have struggled with a reduced supply of clean energy in 2025, due to reduced wind speed and hydro power output.
ASIAN WILT
Asia has been buying LNG at a lower rate than Europe.
The total LNG imports in Asia for January to April were 4.91 million tonnes, the lowest since 2019 and 41% lower than the same period last year.
Asian LNG prices are still high, but the relative price of international gas is higher than thermal coal. This has helped to limit Asian LNG imports until 2025.
The new tariffs of U.S. president Donald Trump are expected to dampen the overall industrial activity in Asia and, with it, the demand for gas.
Egypt and Jordan, both outside of Asia, boosted U.S. LNG exports to record levels for the window from January to April, whereas Central and South American countries saw their purchases fall by 22% compared to the same period in 2024.
MIXED OUTLOOK
The United States will continue to ship its LNG to Europe, particularly as European nations try to appease Trump by increasing their imports of U.S. goods.
A prolonged period of low gas consumption in Asia could derail the plans for building up the gas infrastructure there.
This could lead to U.S. LNG exporters being overly dependent on Europe, and vulnerable to a drop in demand internationally if Europe's system of energy continues to prioritize the development of clean energy over fossil fuels.
These are the opinions of the author who is a market analyst at.
(source: Reuters)