Nine in ten US LNG shipments were bound for Europe in January

Exports of liquefied natural gas (LNG) from the US to Europe increased in January. Nearly nine out of every ten cargoes that left the US were headed for Europe, according to preliminary data from financial company LSEG. The reason was cold weather in Europe, which pushed up gas prices.

Total US LNG exports to all countries reached 8.46 million tonnes in January. That was just below the monthly record of 8.6 million tonnes set in December 2023 and almost the same as the 8.5 million tonnes sold in December 2024, according to LSEG data. Of the 8.46 million tonnes, 7.25 million tonnes, or 86%, went to Europe, compared with 5.84 million tonnes, or 69%, in December, LSEG data showed.

The US is the world's largest LNG exporter and a key supplier to Europe following Russia's invasion of Ukraine. US LNG export contracts do not include destination clauses, allowing buyers to flexibly redirect cargoes from one country to another in response to demand.

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

The price at the TTF trading hub, Europe's most liquid market and its price benchmark, rose above EUR 50/MWh last Wednesday and averaged EUR 48.7/MWh in January, 6% higher than in December.

The price of natural gas at the Asian benchmark JKM (Japan-Korea Marker) averaged EUR 47.04/MWh in January, according to LSEG data.

With most US LNG exports headed to Europe last month, US LNG exports to Asia fell to 0.79 million tonnes from 2.1 million tonnes in December, while exports to Latin America declined to 0.21 million tonnes in January from 0.58 million tonnes in December.