OPINION | US LNG exports surge to new highs on strong buying by Europe
US exports of LNG so far this year have surged by over 20 per cent from the same period a year ago, driven mainly by purchases by European nations, which accounted for over three quarters of total US orders.
Total US LNG shipments during January through April were 34.6 million tonnes, according to trade intelligence firm Kpler, which was by far the highest volume total ever for that period.
European nations accounted for 26.5 million tonnes or 77 per cent of the total volumes shipped out by US sellers.
Purchases by Europe were up 49 per cent from the first four months of 2024, and suggest that European gas users and traders were at least partly attempting to appease US President Trump by snapping up US cargoes during tariff negotiations.
The highest European gas-fired power generation total in four years during the opening quarter of 2025 also likely supported the region's robust LNG imports.
Europe's relatively low gas inventories - which are currently around 33 per cent below year-ago levels - also likely fuelled the strong LNG import appetite, and will remain a key driver of regional LNG import interest in the months ahead.
Top destinations
France, the United Kingdom and the Netherlands were the top three buyers of US LNG during January to April, and together accounted for nearly 35 per cent of total purchases.
France's imports were the highest from the US on record for the January to April period, at 4.8 million tonnes, while UK and Netherlands volumes were slightly below previous peaks.
Other major Europe-based buyers included Turkey (with a record 3.2 million tonnes), Spain, Italy and Poland, which all sharply lifted gas-fired power output during the first quarter of 2025 compared to early 2024.
Other notable European buyers included Germany, Belgium, Greece and Lithuania, Kpler data showed.
Europe's utilities and gas storage operators will likely remain regular gas buyers in the months ahead, in order to replenish drawn-down stockpiles during what is traditionally the weakest period for gas use on the continent.
A majority of the purchases for stock building will likely be from pipelined supplies, which are substantially cheaper than LNG cargoes.
However, LNG will likely remain in the mix for spot purchases by power generators, who have been grappling with reduced clean energy supplies so far in 2025 due to low wind speeds and reduced hydro power output.
Asian wilt
While Europe's LNG imports shot to new highs so far in 2025, Asia's purchases have headed in the opposite direction.
Asia's total LNG imports of 4.91 million tonnes for the January through April window were the lowest for that period since 2019, and were 41 per cent down from the same months last year.
Relatively high international gas prices - especially compared to thermal coal - helped to curb Asian interest in LNG imports for far in 2025, although Asian spot LNG prices recently sank to 11-month lows amid weak buying interest.
Sluggish economic activity across Asia - exacerbated by the new tariffs imposed by US President Donald Trump - is expected to suppress overall industrial activity throughout Asia over the near term, and with it demand for gas.
Outside of Asia, Egypt and Jordan both lifted US LNG imports to a record for the January to April window, while purchases by Central and South American nations were down by around 22 per cent from the same months in 2024.
Mixed outlook
Going forward, Europe will likely remain the dominant destination for US LNG cargoes, especially while European nations are still trying to appease the Trump administration by increasing imports of US products.
Over the longer run, any extended spell of weak buying by Asia could become a major concern for US gas exporters, as a protracted period of declining gas use there could further derail plans to build up gas infrastructure in the region.
That could leave US exporters overly reliant on Europe for LNG sales, and leave them vulnerable to a sharp drop in international demand if Europe's energy system continues to prioritise clean energy supply development over fossil fuels.
(Reporting By Gavin Maguire; Editing by Sonali Paul)
