Energy Intelligence’s Post

Dependence on Russian natural gas growing fast, as LNG imports tank

In 2023, Europe’s LNG imports averaged 14.7 Bcf/d, essentially unchanged from 2022, despite an estimated 4.2 Bcf/d of regasification capacity additions. Mild 2022–23 winter weather in the Northern Hemisphere reduced heating demand and contributed to Europe ending the winter heating season with record-high natural gas in storage. LNG imports into Europe established new records from June 2022 through April 2023, when imports peaked at 18.1 Bcf/d. Imports then declined in subsequent months because storage inventories were full, international LNG prices were relatively high, and energy conservation measures significantly reduced natural gas consumption. (The United States remained the largest liquefied natural gas supplier to Europe in 2023 – Today in Energy – EIA (U.S. Energy Information Administration) – February 29th 2023) #LNG #liquefiednaturalgas #EuropeLNGimports #Europenaturalgasstorage

⛽European natural gas imports weekly update ➡️ Gas storage is at 85% of capacity, below the 2022/23 levels ➡️Record gas withdraws are driven by the colder start of winter and low wind speed ➡️November LNG imports are at the highest monthly level since May, driven by the Americas (47% of EU November LNG imports) and Russia (18%) 🔗 Check out the dataset by Georg Zachmann, Ben McWilliams, Ugne Keliauskaite and Giovanni Sgaravatti here: https://lnkd.in/emVEGiAi

More LNG heads for Europe as the gas market gets tighter. The price spread between Asian and European LNG has been shrinking over the course of this winter. It even inverted recently as measured in ICIS TTF-EAX spread. ⚓ Multiple LNG vessels change course to benefit from higher prices in Europe. This is true in particular for carriers from US origin which often carry spot market-traded LNG. It's a wonderful example of a functioning global gas market where prices send signals to optimise commercial trade decisions. 📈 While Asian spot LNG demand is moderate, Europe has increased appetite for prompt deliveries. A shortfall of Russian gas supplies, cold temperatures, depleting storage sites make ICIS Energy Analysts expect European LNG imports 2025 to increase more than 15% and nearing 2022 record levels.

Canada's upcoming entry into global LNG markets is dovetailing nicely with pricing and demand. Although Trudeau's destructive efforts assisted in the canceling of nearly $150B in LNG projects, luckily, LNG Canada and 3 other LNG projects remain in progress. Reported today.... (Reuters) - United States exports of LNG to Europe are set to jump in the coming weeks after the price spread between domestic natural gas and Europe's main gas pricing hub hit one-year highs. The price differential between U.S. Henry Hub natural gas futures - the U.S. gas price benchmark - and the TTF gas trading facility in The Netherlands has widened by over 30% from the current 2024 average for delivery during the coming winter. That's signalling bumper profit potential for U.S. exporters of liquefied natural gas (LNG), who are increasing the volumes of gas flows to export facilities.

Freezing European temperatures and the loss of Russian pipeline gas have boosted demand for LNG with January cargoes shifting from Asia to take advantage of higher prices in Europe. #energy #power #natgas #lng #import #export #policy https://lnkd.in/e6ku5jk6

US DOE Releases LNG Gas Export Study: Facilities Already Approved Will Meet Global Demand For Decades; Unfettered Exports Would Increase Domestic Natural Gas Prices; Electricity Prices; Costs To Manufacturers  [PaEN]  https://lnkd.in/eZ8iWcKw

When referring to natural gas prices in Europe, we usually talk about TTF, an acronym for Title Transfer Facility which doesn’t say much about what this is. TTF is a virtual trading point for natural gas in the Netherlands operated by Gasunie Transport Services B.V. The reason for using this as the European benchmark is that it’s a liquid and transparent trading hub with gas quoted in €/MWh. That the trading hub is liquid is demonstrated by volume with Netherlands being the biggest importer of US LNG in 2024 with 137 US LNG cargoes. As Europe entered 2024 with high gas inventories after two mild winters and demand subversion given the elevated prices, Europe’s share of US LNG cargoes fell from 68% in 2023 to 53% in 2024 according to S&P Global. During the same time US LNG exports grew from ~85mt to ~88mt. From January 1, this year Russian pipeline gas exports via Ukraine to Europe was dicontinued after the transit agreement expired on Dec 31, 2024. This means about 15bcm (about 11mt LNG) less gas from Russia to European importers. Coincidentally, US LNG export is expected to grow about 11mt in 2025 so we could expect that most of the Russian pipeline gas will be replaced by US LNG. However, the challenge lies in supplying gas to Austria, Hungary, and Slovakia, as they lack LNG import terminals and must rely on pipeline imports from countries that have such facilities. #lng #energy #gas #naturalgas #shipping #maritime #oil #trading #utilities #transportation #eu #oilgas #power

US DOE Releases LNG Gas Export Study: Facilities Already Approved Will Meet Global Demand For Decades; Unfettered Exports Would Increase Domestic Natural Gas Prices; Electricity Prices; Costs To Manufacturers  [PaEN]   https://lnkd.in/eZ8iWcKw

🇺🇸 🚨 US study on LNG exports expected to stop short of saying they are not in public interest The administration of President Joe Biden will release as soon as Tuesday a study on exports of liquefied natural gas, or LNG, which is expected to stop short of saying the trade is not in the public interest, two industry sources with knowledge of issue said. Biden in January paused the Department of Energy's approvals of U.S. LNG exports to big consumers in Asia and Europe in order for his administration to conduct the study on the environmental and economic impacts of the booming industry. Source ➡️ https://lnkd.in/gURCFgM9 #LNG #USLNG #Biden #DOE #FERC