The proportion of US LNG exports to the Atlantic Basin rose to a two-year high of 85% in February 2025, as Europe competed for marginal LNG with Asia amidst colder than normal temperatures. US LNG flows contributed to record European import levels in January, and a widening of the DES Europe LNG to gas hub spread as regas utilisation increased.
Since mid-Feb, the European market has relaxed due to milder, windier weather, potential relaxation of storage mandates and swirling uncertainty around the future of Russian flows (stay tuned for Monday’s feature article for more…), reducing forward expectations of European imports (e.g. as reflected in the narrowing LNG to gas hub spread). With summer approaching, competition for marginal US FOB cargoes will remain a key driver of global price spreads, particularly as uncertainty lingers over the scale of Europe’s storage injection needs.
Upcoming webinar
Register today for our free upcoming webinar “European flexible gas asset value in a post crisis world” – hosted on Tuesday 18th March at 09:00 – 09:30 GMT (10:00 – 10:30 CET, 17:00 – 17:30 SGT).
Our panel will be discussing the following:
- How EU gas flow patterns have changed since Russian supply cuts
- Structural changes in flexible gas asset use since the crisis
- The role of flexible gas assets in balancing European markets
- Impact on flexible gas asset revenue and extrinsic value capture
- Our views on how asset value will evolve
Register here: https://register.gotowebinar.com/register/1526245729977196375
