US LNG exports to Europe remained firm throughout 2022, according to a new North American LNG and gas market update from Rystad Energy analyst Ade Allen.
In the update, which was recently sent to Rigzone, Allen noted that these exports averaged 6.4 billion cubic feet per day and accounted for 63.7 percent of total exports, between January 2022 and January 2023.
“We hope this will continue; TTF [Title Transfer Facility] prices have declined since the summer 2022 peak, but the forward curve is still relatively steep,” Allen said in the update.
“We also consider that the proportion of US LNG export volumes not contracted in January 2023 was recorded at 71.5 percent, which is higher than the 2022 average of 64.2 percent. This implies that American cargoes have enough flexibility to target the most competitive market, which is almost certainly Europe,” Allen added.
In January 2023, US LNG exports to Europe were about 6.9 billion cubic feet per day, or 63.4 percent of total exports, Allen noted in the update. A chart showing US LNG exports to Europe included in Rystad’s update showed five vessels with an unloading date between January 28 and 30. Three deliveries were headed to the UK, while the other two went to Belgium and the Netherlands, according to the chart, which showed two deliveries came from Sabine Pass LNG, while the other three came from Cameron LNG, Corpus Christi LNG and Calcasieu Pass . LNG.
US-EU Working Group on Energy Security
In a joint statement in March 2022, the US and the European Commission revealed that they would immediately establish a joint working group on energy security. In this joint statement, it was noted that the US will strive to secure, including working with international partners, additional volumes of LNG for the EU market of at least 15 billion cubic meters by 2022 “with the expected increases in the future”.
The March 2022 joint statement also stated that the European Commission will work with EU member states to ensure stable demand for additional US LNG through 2030 of at least approximately 50 billion cubic meters per year.
In a joint statement after a meeting of the US-EU Energy Security Working Group on November 3, it was highlighted that the commitment to increase LNG supplies to Europe by 15 billion meters had been exceeded cubic in 2022.
“Between January and October, approximately 48 billion cubic meters of LNG were exported from the United States to the EU, which is 26 billion cubic meters more than in all of 2021,” the joint statement noted.
“Based on this trend, the participants committed to work to maintain a high level of LNG supply in Europe in 2023 of an additional 50 billion cubic meters compared to 2021,” the joint statement added.
To contact the author, please send an email andreas.exarcheas@rigzone.com
