Once again, Europe is at war with itself over fossil fuels—in particular, LNG imports. While the continent managed to avert a predicted natural-gas doomsday for the ’22-‘23 winter heating months, Europe’s climate goals to become carbon neutral by 2050 are now putting the kibosh on long-term purchases of U.S. LNG. Suffice it to say, this doesn’t bode well for the number of American new-build and expansion projects courting European buyers. Multi-decade contracts are vital to secure financing for proposed export terminals.

Reese Energy Consulting today is following the latest news from the U.S. LNG industry, which has seen Europe as its largest customer since 2021. Following Russia’s invasion of Ukraine last February, U.S. exports to Europe counted as 75% of all domestic cargoes with numerous tankers diverted from Asia. But with the winding down of the coldest months and clean-air mandates nipping at their heels, European LNG buyers now are focused on gas supply needs two years down the road, not 20. Asian demand, however, is back on the rise and that’s exactly where LNG developers are wooing long-term customers. A decrease in spot market prices hasn’t hurt either. India has announced it’s on the hunt for 12 MTPA of more supply.