Supply: Graph by the U.S. Power Data Administration, based mostly on information from the Worldwide Group of Liquefied Pure Fuel Importers (GIIGNL) annual liquefied pure fuel commerce experiences (2010–2020) and CEDIGAZ (2021)
In 2021, a big share of Europe’s provide of liquefied pure fuel (LNG) originated in the USA, Qatar, and Russia. Mixed, these three nations accounted for nearly 70% of Europe’s whole LNG imports, in accordance with information by CEDIGAZ. The US turned Europe’s largest supply of LNG in 2021, accounting for 26% of all LNG imported by European Union member nations (EU-27) and the UK (UK), adopted by Qatar with 24%, and Russia with 20%. In January 2022, the USA equipped greater than half of all LNG imports into Europe for the month.
Exports of LNG from the USA to EU-27 and the UK elevated from 3.4 billion cubic ft per day (Bcf/d) in November 2021 to six.5 Bcf/d in January 2022—probably the most LNG shipped to Europe from the USA on a month-to-month foundation up to now, in accordance with the U.S. Division of Power’s LNG Month-to-month experiences and our personal estimates, that are based mostly on LNG delivery information. Rising U.S. LNG exports are the results of each pure fuel provide challenges in Europe and the sizable value variations between pure fuel produced in the USA and present costs at European buying and selling hubs.
Pure fuel provide constraints in Europe and the low storage inventories of the previous yr contributed to current will increase in U.S. LNG exports to Europe. Europe’s pure fuel manufacturing has been in steady decline due to manufacturing limits on the Groningen discipline within the Netherlands and declines within the mature fields within the North Sea. To fulfill demand, Europe’s pure fuel imports, notably from Russia, have elevated lately.
Pipeline flows of pure fuel from Russia decreased throughout 2021. Pipeline receipts from Russia on the three foremost entry factors (Kondratki in Poland, Greifswald in Germany, and Velke Kapusany in Slovakia, which mixed account for 14.3 Bcf/d of import pipeline capability from Russia) averaged 10.7 Bcf/d in 2021, in contrast with 11.8 Bcf/d in 2020 and 14.1 Bcf/d in 2019, in accordance with information by Refinitiv Eikon. Extra pure fuel delivered by pipeline from Norway, which elevated from 10.4 Bcf/d in 2019 and in 2020 to 11.1 Bcf/d in 2021, was not sufficient to offset lowered pipeline receipts from Russia.
Provide challenges within the European market have led to rising regional costs for pure fuel. The pure fuel spot value on the Title Switch Facility (TTF) within the Netherlands—probably the most liquid digital pure fuel hub in Europe—has been buying and selling at all-time excessive ranges. The TTF value averaged $28.52 per million British thermal models (MMBtu) from September 2021 by the primary week of February 2022. The TTF value peaked at $60.20/MMBtu on December 21, 2021. Previous to this sharp value improve, the TTF value had averaged $9.28/MMBtu from January by August 2021, $3.28/MMBtu throughout 2020, $4.45/MMBtu throughout 2019, and $6.45/MMBtu from 2014 by 2018.
Traditionally, spot pure fuel in Europe has traded at costs decrease than LNG spot costs in Asia. In current months, nevertheless, pure fuel costs in Europe have intently tracked LNG costs in Asia. On some days, the pure fuel value in Europe has exceeded the LNG value in Asia, attracting greater quantity of versatile LNG provides to Europe. LNG imports to Europe elevated in December 2021 and January 2022, averaging 10.8 Bcf/d and 14.9 Bcf/d, respectively, partly in response to the worth at TTF rising above LNG spot costs in Asia.
Supply: Graph created by the U.S. Power Data Administration, based mostly on information from Bloomberg Finance, L.P.
Principal contributors: Victoria Zaretskaya, Chris Peterson, Warren Wilczewski