USA LNG Exports to Europe Hold Firm Throughout 2022

U.S. LNG exports to Europe held firm throughout 2022, according to a new North America gas and LNG market update from Rystad Energy analyst Ade Allen.

In the update, which was sent to Rigzone recently, Allen highlighted that these exports averaged 6.4 billion cubic feet per day, and made up 63.7 percent of total exports, between January 2022 and January 2023.

“We expect this will continue; TTF [Title Transfer Facility] prices have declined from the summer 2022 peak, but the forward curve is still relatively elevated,” Allen said in the update.

“We also consider the share of uncontracted U.S. LNG export volumes in January 2023 registered at 71.5 percent, which is higher than the 2022 average of 64.2 percent. This implies U.S. cargoes have sufficient flexibility to head to the most competitive market, which is almost certainly Europe,” Allen added.

In January 2023, U.S. LNG exports to Europe were about 6.9 billion cubic feet per day, or 63.4 percent of total exports, Allen highlighted in the update. A chart showing U.S. LNG exports to Europe included in the Rystad update showed five vessels with a discharge date between January 28-30. Three deliveries headed to the UK, while the other two went to Belgium and the Netherlands, according to the chart, which showed that two deliveries came from Sabine Pass LNG, while the other three came from Cameron LNG, Corpus Christi LNG, and Calcasieu Pass LNG.

USA-EU Task Force on Energy Security

In a joint statement in March 2022, the U.S. and the European Commission revealed that they would immediately establish a joint task force on energy security. In that joint statement, it was noted that the U.S. would strive to ensure, including working with international partners, additional LNG volumes for the EU market of at least 15 billion cubic meters in 2022 “with expected increases going forward”.

The March 2022 joint statement also stated that the European Commission will work with EU Member States toward ensuring stable demand for additional U.S. LNG until at least 2030 of approximately 50 billion cubic meters per year.

In a joint statement following a meeting of the U.S.-EU Task Force on Energy Security on November 3, it was highlighted that the commitment made to increase LNG supplies to Europe by 15 billion cubic meters in 2022 had been surpassed.

“Between January through October, approximately 48 billion cubic meters of LNG was exported from the U.S. to the EU, which is 26 billion cubic meters more than for the full year of 2021,” that joint statement noted.

“Building on this trend, the participants committed to work on keeping a high level of LNG supplies to Europe in 2023 of an additional approximately 50 billion cubic meters as compared to 2021,” the joint statement added.

To contact the author, email andreas.exarheas@rigzone.com