US LNG Exports to Asia and Europe – Steep Competition Ahead for Regions

The United States LNG
continues to find a home in Europe as forecasts of lower temperatures to storm
the market, bringing a steep competition for Asian region. The U.S. also
supplies liquified natural gas (LNG) to Asia, so the fight for additional spot
volumes will be increasingly important this winter. Once a cold snap hit the
market, Asia and Europe will be battling with receiving the extra LNG cargoes
out of the United States.

Recent droughts at the Panama
Canal as well as persistent milder temperature forecasts have subdued Asia’s
competitiveness for LNG imports from the U.S. However, with winters setting up,
the battle could intensify in the coming months as prices are supported by
heating demand of LNG.

US LNG Exports to the World

US LNG exports to the world is
increasing every year due to high demand from Europe and Asia. According to a
report, LNG exports from the United States totalled USD 5,848 million in 2018,
that dollar amount increased to USD 47,331 million in 2022. Here is a chart
showing US LNG exports to the world from 2018 to 2022.

Quarterly, US LNG exports
totalled USD 9,479 million in Q1 of 2022, that increased to USD 10,500 in Q1 of
2023. Similarly, the other quarters of 2023 also recorded a rise in the value
of LNG shipments as compared to the same quarters of 2022. Take a look at the
chart to understand the US LNG export market from Q1 of 2022 to Q3 of 2023.

US LNG Exports to Asia and
Europe

Although temperatures to fall
in the US, Europe and Asia, the demand of US LNG is expected to rise further
and give tough competition among the regions. In addition, with the
weaker-than-expected growth and demand signals from Asia, as well as the
ongoing Panama Canal drought, any extra cargoes from the U.S. have been heading
to Europe. Additional costs in taking longer routes due to the delays at Panama
Canal, have also depressed any extra US volumes flowing to Asia.

As we know the United States
exports liquified natural gas more to the European countries as compared to the
Asian region; there will be a competition between the regions. It is
anticipated that the Asian market for US LNG exports is expected to rise in the
coming months. According to a report, US LNG exports to Europe were higher than
that of Asia in all quarters in 2022 and 2023. Take a look at the chart to
understand and make a comparison of US LNG exports to Asia and Europe.

Yearly-wise, US LNG exports to
Europe have constantly increased in the last couple of years. In fact, the
United States recorded 4 times higher value of LNG exports to Europe in 2022.
US LNG exports to Asia have also been increased in the last five year, however,
the year 2022 saw a slight dip in the value of shipments. Here is a complete
data visualization of US LNG exports to Europe and Asia from 2018 to 2022.

List of US Top Export
Destinations of LNG 2022

As European countries are the
largest export destinations of US LNG, the highest number of liquified natural
gas shipments were arrived in France from the United States in 2022. France was
followed by the United Kingdom, Spain, the Netherlands, South Korea, Poland,
Japan, Turkey, China, India, Italy, Croatia, Taipei, Chinese and Argentina.
Here is the list of US top export destinations of LNG with their values in US
dollar and percentage as well.

As demand begins to increase
and the delays at the Panama Canal persist, logistics costs out of the United
States will increase. To keep the arbitrage open, US prices and freight will
either have to decline or Europe and Asia will have to price higher to continue
the flow of supplementary LNG volumes.