European Union economy runs on gas from the United States [REPORT]

  Source: JOGMEC
LNG Prices and Economic Conditions

The spot price for LNG in Northeast Asia, for March delivery, fell to $10/MMBtu on February 6th, down from a low of $12/MMBtu (JKM) contracted on January 30th. At the beginning of the week, JKM fell by more than $1 to $10/MMBtu. This was a market reaction as geopolitical tensions between the US and Iran eased.

Prices also fell to an average of $10/MMBtu due to high inventories in Northeast Asia. At the end of the first week of February, the JKM crude oil price rose slightly to $10/MMBtu. The market is impacted by the fact that LNG inventories in Japan for electricity generation stood at 2.08 million tons as of February 1st – 0.17 million tons less than a week earlier, JOGMEC analysts explain.

European TTF prices (for March delivery) fell to $12.3/MMBtu on February 6th. By the last weekend of January, they were at $13.7/MMBtu. European prices initially fell to $11.8/MMBtu at the beginning of the first week of February. TTF prices fell to $11.4/MMBtu in early February. This move was influenced by forecasts of easing cold weather in Europe.

In the first week of February, Europe began to increase the use of gas from storage, while wind energy production declined. Prices began to reach $12.3/MMBtu as early as February 6th. According to AGSI+, EU-wide gas stocks stood at 37.4% on February 6, down from 41.5% on the last weekend of January. This was 25.5% lower than last year and 30.4% lower than the five-year average.

Source: Banchero Costa Research.

With gas across the Atlantic

In 2025, the United States exported 110.9 million tons of LNG, a 26.1% year-on-year increase compared to the 88 million tons loaded at gas terminals in 2024. Qatar exported 81.2 million tons in 2025, with its customer markets growing by 5.1% year-on-year. Supplies from Australia decreased to 79.7 million tons in the January-December 2025 period, representing a 2.4% year-on-year decrease in loadings.

Supplies from Southeast Asia decreased by only 0.7% year-on-year to 45.6 million tons. Russia exported 30.3 million tons of LNG in 2025, a 4.4% year-on-year decline. Deliveries of Russian LNG to the global market in 2025 were equivalent to the January-December 2021 period.

The European Union remains the world’s largest LNG importer. In 2025, EU countries received 104.6 million tons of LNG from regasification terminals. Imports increased by 25.9% year-on-year during 2025.

EU countries thus generated 24.3% of global LNG demand. China imported 68.2 million tonnes in 2025. This represents a 13.3% year-on-year decline compared to the 78.6 million tonnes imported by gas carriers to China in 2024. The PRC industry generated 15.8% of global LNG demand.

 Source: Wood McKenzie

Japan imported 67.3 million tons of LNG to its gas terminals in 2025. Japan’s economy reduced LNG demand by only 0.1% year-on-year. Last year, it accounted for 15.6% of global imports. South Korea imported 49 million tons between January and December 2025. This country’s economy increased demand for liquefied natural gas by 2.9% year-on-year. Last year, it accounted for 11.4% of global trade in this strategic resource.

U.S. gas suppliers capitalized on the boom resulting from geopolitical tensions and changes in energy policy in European Union countries. LNG carrier manufacturers, their operators, terminal and pipeline operators, and gas trading companies also took advantage of these changes. In 2021, US exports increased by 50.3% year-on-year. Following Russia’s attack on Ukraine in 2022, US LNG exports increased by 9.5% year-on-year, and by 11.8% year-on-year in 2023. It should be noted that European Commission sanctions were not imposed on LNG imports from Russia. Therefore, US exports decreased by 0.9% year-on-year in 2024. However, 2025 saw a sharp reversal in deliveries compared to 2024. LNG tanker loadings at US gas terminals increased by 26.1% year-on-year to 110.8 million tons.

The United States continued to dominate global LNG export markets in 2025, maintaining its position as the world’s largest exporter. The largest LNG loading terminals in the United States in 2025 were: Sabine Pass, where tankers loaded 30.1 million tons of LNG, and Corpus Christi (17.1 million tons). At the Davant terminals, ships received 16.3 million tons, at Freeport 15.9 million tons, and at Cameron 14 million tons. Tankers carrying American LNG mainly travel the transatlantic routes to the EU and North Africa. This was clearly visible at sea crossings and at EU terminals, which in 2025 will unload 63% more American LNG year-on-year, unloading 60.2 million tons.