United States exports of liquefied natural gas hit their second highest monthly level in history in October, driven by European buying ahead of the winter heating season. Shipments to Europe rose by 1 million tonnes from September to 6.89 million tonnes, according to LSEG data cited by Reuters, while exports to Asia were little changed at 2.73 million tonnes, down slightly from 2.84 million tonnes in September.
Europe has become the largest buyer of United States LNG since losing most of its Russian pipeline supply, and the pull is intensifying as the bloc’s restrictions bite. European Union limits on short term Russian LNG contracts are already in effect, the ban on Russian LNG under long term contracts takes effect on January 1, 2027, and remaining pipeline imports are scheduled to end in autumn 2027.
The buying comes at a steep price. European gas prices rose above 100 euros per megawatt hour late last week and again at the start of this week, the first time in four years they have held above that level, with some market participants warning they could reach 150 to 180 euros if winter demand bites. The International Energy Agency said on November 3 that EU storage is entering the heating season at its lowest level since 2013, and that the refill needed through summer 2027 could prolong global tightness well into next year.
The supply side is not easing the squeeze. QatarEnergy has extended force majeure on its own LNG exports to December and has agreed to buy 4 million tonnes a year from Cheniere Energy in the United States under a long term deal with shipments beginning in the early 2030s, an unusual step for the former top exporter while its own Hormuz loadings remain halted.