Last winter saw new records set for LNG imports, as surplus cargos continued to flow into European hubs. The Covid demand shock saw that continue into Q2, but imports have fallen since June. Three reasons have contributed: (i) shut in of US export volumes has eased the cargo surplus since Q2 (ii) spot Asian LNG demand has recovered into Q3 (iii) there have been some significant supply outages e.g. 8mtpa across Gorgon & Prelude in Australia. LNG import volumes will be a key barometer for European gas market pricing into winter.
European LNG imports down in Q3