Europe soaked up nearly all US LNG exports last month, data show

By Curtis Williams

HOUSTON (Reuters) - U.S. exports of liquefied natural gas (LNG) to Europe jumped in January as cold weather drove up demand and prices for the superchilled gas rose, preliminary data from financial firm LSEG showed.

Nearly nine of every ten cargoes leaving the U.S. headed to Europe, while total exports to all countries for the month reached 8.46 million metric tonnes (MT). That is just shy of the monthly record of 8.6 MT hit in December 2023 and almost the same as the 8.5 MT sold in December 2024, according to LSEG data.

Of the 8.46 MT sold in January, 7.25 MT, or 86%, went to Europe, versus 5.84 MT, or 69%, sold to the continent in December, LSEG data showed.

The U.S. is the world's largest LNG exporter and a key supplier to Europe following Russia's invasion of Ukraine. The U.S. does not have destination clauses on its LNG export contracts, allowing buyers the flexibility to easily move cargoes from one country to another based on demand.

In January at least six cargoes destined to Asia were diverted to Europe amid higher prices and weaker Asian demand, according to LSEG ship-tracking data.

The front-month European benchmark gas contract at the Dutch Title Transfer Facility (TTF) was trading above $15 per mmBtu last Friday and averaged $14.67 per mmBtu in January, up from $13.82 per mmBtu in December, LSEG data showed.

The Asian benchmark on the Japanese Korean marker(JKM) averaged $14.166/mmBtu in January compared to $14.096 per mmBtu in December, according to LSEG data.

LNG EXPORTS FALL SHORT OF RECORD

U.S. LNG exports were expected to reach a new record in January with the addition of Venture Global's Plaquemines LNG plant in Louisiana. In January, six cargoes, or 0.43 MT, were exported to Europe from Plaquemines, but the additional production was offset by lower output at Freeport LNG in Texas, which went offline or did not operate at full capacity several times during January, LSEG data showed.

Freeport is the U.S. third largest LNG exporter but has had problems operating at full capacity for extended periods, according to LSEG data.

Venture Global became publicly traded in a blockbuster IPO in January that it the most valuable LNG company in America. It has quickly ramped up production from its 20 MTPA Plaquemines plant, part of which is still under construction, at times pulling as much as 1.3 billion cubic feet (bcf) of gas, LSEG data showed.

With most U.S. exports heading to Europe last month, sales of LNG to Asia fell to 0.79 MT down from 2.1 MT in December, while exports to Latin America were down to 0.21 MT in January compared to 0.58 MT in December, LSEG data showed.

Three cargoes totaling 0.21 MTPA went to Egypt from the U.S. in January, according to LSEG data.

(Reporting by Curtis Williams in Houston; Editing by Nick Zieminski)