Global LNG imports jump as Europe draws cargoes from Asia

- Advertisement -

By Clyde Russell

LAUNCESTON, Australia- The world’s imports of liquefied natural gas are set to jump to the highest in a year in January as Europe’s winter demand draws cargoes away from top-consuming region Asia.

A total of 38.12 million metric tons of the super-chilled fuel is on track to be imported in January, up from 37.69 million in December and the most since January 2024’s 38.73 million, according to data compiled by commodity analysts Kpler.

- Advertisement -

The January volume is also the third-highest on record, underscoring the strong growth in LNG imports as new supply comes online and as Europe seeks to replace pipeline natural gas from Russia.

Europe’s imports are expected by Kpler to rise to 11.82 million tons in January, up from 10.87 million in December and the highest since April 2023.

The January volume for Europe is also on track to be the fourth-highest monthly total, eclipsed only by three months in 2022 and 2023 when the continent was scrabbling for gas after the shutdown of pipeline supplies from Russia in the wake of Moscow’s invasion of Ukraine in February 2022.

It’s also worth noting that while Europe’s LNG imports are likely to rise 8.7 percent in January from the month before, arrivals from Russia are expected to drop to 1.60 million tons, down 11.6 percent from December’s 1.81 million.

The outlook for Europe’s LNG imports from Russia is increasingly uncertain, especially with the return of Donald Trump as US president.

Trump is unabashedly in favor of boosting US energy exports, and LNG shipments to Europe offer one of the best opportunities to do so.

If European countries agreed to phase out imports from Russia in favor of US cargoes it would help meet several objectives.

These include putting further pressure on Russian President Vladimir Putin to end the war in Ukraine, as well as giving Trump a “win” that may help ease the threat of new tariffs on Europe’s exports to the United States.

The United States is already the world’s largest exporter of LNG, and the commissioning of new plants in 2025 will cement that position.

But the global LNG market may move into surplus by the end of this year, making it in the interests of both Trump and US LNG exporters to try and limit markets for Russian exports. —Reuters

Author

- Advertisement -

Share post: