Key facts
- US LNG exports to Europe reached 6.89 million tons last month, up 1 million tons, per LSEG data cited by Reuters.
- US LNG exports to Asia fell to 2.73 million tons from 2.84 million tons in September.
- European gas prices held above 100 euros per MWh, the first time in four years, per the report.
- QatarEnergy extended force majeure on its LNG exports to December, the report said.
- QatarEnergy agreed to buy 4 million tons of LNG a year from Cheniere Energy from the early 2030s.
US exports of liquefied natural gas to Europe rose by 1 million tons last month to 6.89 million tons, the second-highest level on record, according to LSEG data cited by Reuters. Exports to Asia were almost unchanged, slipping to 2.73 million tons from 2.84 million tons in September.
Europe has become the largest buyer of US LNG since losing much of its Russian pipeline gas supply. EU restrictions on short-term Russian LNG contracts are already in effect, a ban on long-term Russian LNG contracts takes effect on January 1, 2027, and remaining pipeline gas imports are scheduled to end in autumn 2027. The bloc is still buying Russian LNG at record levels so far this year, the report said.
European gas prices rose above 100 euros per MWh briefly at the end of last week and again at the start of this week, staying above that level longer the second time. The report said it was the first time in four years prices were above 100 euros, and that some expect they could reach 150 to 180 euros per MWh. Higher prices would reduce demand for US LNG only in a limited way because European buyers have few alternatives beyond expensive LNG or coal, and remaining coal plants are running at capacity, the report said.
QatarEnergy extended force majeure on its own LNG exports to December and agreed to buy 4 million tons of LNG a year from Cheniere Energy, with shipments due to begin in the early 2030s, according to the report.