Extremely high demand in Europe led to a record increase in US exports of liquefied natural gas (LNG) in December, according to Refinitiv data, given that limited deliveries from Russia have raised concerns about a possible energy crisis at a time when the continent is heading for a period of low temperatures, Reuters reports.
About half of the record volumes of LNG delivered by the US last month went to Europe, up 37% from 2021, according to Refinitiv and the US Administration for Energy Information.
The advance reflects an increase in demand for home heating and industry, which has led to record prices in Europe and Asia. The United States has cheap and quantitatively significant deliveries after domestic production exceeded demand in the United States by 10%, according to Agerpres.
Data from maritime transport show that about 7.15 million tonnes of LNG were delivered last month on 106 ships, up 16% from 6.14 million tonnes on 89 ships in December 2020, surpassing the previous record of 6.51 million tons in May.
At the TTF hub in Amsterdam, quotations for natural gas with delivery have increased significantly in recent months, a trend that has also been recorded in Asia. Weather forecasts for a drop in temperatures in Europe have also put pressure on rising gas prices, but low deliveries in Russia have been the main factor behind rising prices.
“Demand for liquefied natural gas in Asia could rise in January, which could reduce deliveries to Europe,” said Wei Xiong, an analyst at Rystad Energy.
In the ports of the United Kingdom, the Netherlands and Belgium, there are about 30 ships carrying LNG that will deliver their cargo this month, and at least another 13 will arrive from the United States.
Europe has been at the epicenter of an energy crisis since last year, when removing restrictions imposed in the context of the COVID-19 pandemic generated high energy demand at a time when natural gas stocks were low. Reference prices have risen fivefold since January last year, putting pressure on consumers and businesses.