US supplied most LNG to Europe last year, reaching top spot in just five years

The largest volume of liquefied natural gas imported into the European Union and the United Kingdom last year came from the United States. Until recently, however, the top spot belonged to Qatar, which was by far the largest supplier of liquefied natural gas (LNG) until 2018.

Amid the escalation of the situation in Ukraine and the suspension of certification for the Nord Stream 2 gas pipeline, the question of how the European Union would meet its gas demand in the event of an interruption to Russian gas supplies is becoming increasingly pressing. This is all the more relevant in the current context of declining production in the European Union.

One alternative to Russian pipeline gas supplies is LNG deliveries, particularly from the US. These have grown significantly in recent years, and according to statistics from the US Department of Energy, the US even became the largest supplier of LNG to the European Union and the United Kingdom, with a 26% share, last year.

It cannot be ruled out that the US will retain its leading position this year with an even wider margin. In response to higher natural gas prices in Europe, LNG supplies to the European Union reached a new record. Moreover, according to statistics from the US Department of Energy, fully half of all LNG imported into Europe came from the US.

Record imports were matched by the utilisation of European LNG terminal capacity. Although their capacity is growing, capacity utilisation reached a record 74% in January.

One reason for higher LNG imports into Europe is, among other things, higher natural gas prices in the EU than on the Asian market. Historically, prices in the European Union were lower, and LNG suppliers therefore preferred the Asian market. However, this has changed in recent months, and in some cases an interesting phenomenon has even occurred, with tankers bound for Asia being redirected to the European market.

From first LNG delivery to top spot in five years

LNG imports from the US only became significant in 2019. Two years earlier, imports were substantially lower. Since 2016, a total of 64 bcm of natural gas has been transported from the US to the European Union.

While the very first LNG shipment from the US to Europe was sent to Portugal in April 2016, a total of 246 LNG tankers arrived from the US in 2021, delivering a combined 22 bcm of natural gas.

However, it should be added that this volume is relatively small compared with pipeline supplies. The commissioning of Nord Stream 2 alone would increase annual import capacity from Russia by 55 bcm.