Kathrine Frich
The U.S. has increasingly shifted its LNG exports from Europe to Asia.
European countries face new challenges in their quest to reduce dependence on Russian fuel as the U.S. redirects its liquefied natural gas (LNG) exports to Asia.
Shifting from Europe to Asia
While European nations have decreased their imports of Russian fuel, they have not been able to eliminate it entirely, according to Tass.
The U.S. has increasingly shifted its LNG exports from Europe to Asia, where prices for the commodity are higher.
This trend has significant implications for Europe’s energy strategy, making it difficult for the continent to sever ties with Russian gas completely.
Decline in LNG Exports to Europe
A report published in mid-July by the Gas Exporting Countries Forum (GECF) highlighted a 20% year-over-year reduction in LNG supplies to Europe in June, dropping to 7.4 million tons – the lowest level since October 2021. This decline in LNG exports to Europe is attributed to several factors, including decreased gas demand, high storage levels, increased pipeline imports, and higher LNG prices in Asia. In contrast, LNG imports by Asian countries rose by 8.2% to 22.36 million tons.
From January to June 2024, Europe imported 54.6 million tons of LNG, while Asia imported 141.16 million tons, a 10% increase.
In June, the top LNG suppliers were the U.S., Australia, and Qatar, with Russia ranking fourth. The shift in U.S. exports, driven by more lucrative markets in Asia, has complicated Europe’s efforts to diversify its energy sources and reduce its reliance on Russian gas.
