US cuts LNG supplies to Europe

At the end of July 2024, Europe imported 1.5 million tons of liquefied natural gas ( LNG ) from the United States and 1.3 million tons from Russia, News.az reports citing Neftegaz.ru .

In July 2024, Russia was close to overtaking the United States as the largest supplier of LNG to Europe, despite efforts by politicians in the region to block fuel supplies.

However, the result is associated not so much with an increase in imports from Russia, but with a reduction in supplies from America.

According to preliminary supply tracking data: The gap between LNG supplies from the two countries to Western Europe narrowed in July to its lowest level since late 2021.

Supplies from the two countries are almost equal, as US energy companies choose the region willing to pay the most.

American LNG is generally not restricted by destination.

LNG prices in Asia rose in late July 2024 due to heat.

Egypt also set premium prices for imports in order to attract supplies to the region amid abnormal temperatures and a decline in production in the country.

In addition, disruptions due to tropical storms only worsened the shortage in Europe.

For example, one of the largest US LNG export plants, Freeport LNG, suspended loading for more than 2 weeks due to Hurricane Beryl.

On July 29, 2024, it was reported that Freeport LNG was close to returning to full production, having processed 2.2 billion cf ( 62.3 million m3 ) of natural gas. On July 28, 2024,

the United States was set to ship at least 15 billion m3/year of LNG to Europe , but on the condition that prices reflect long-term market fundamentals and supply and demand stability.

In June 2022, the country became the largest supplier of the fuel to Europe for the first time in history.

The gap in supplies between US and Russian exporters to the European region has narrowed from 3.7 million tons of LNG/month to 200 thousand tons of LNG/month from January to July 2024.

Russia has been steadily exporting from 850 thousand tons of LNG/month to 1.6 million tons of LNG/month to Europe since the start of the Russian NVO in Ukraine.

The NYT also reported in early 2024 that the US could increase gas supplies to Asia using the Mexican route rather than the Panama Canal.

News.Az