Europe's LNG Imports Surge Amid Strait of Hormuz Disruptions

European imports of liquefied natural gas (LNG) are rising ahead of the Northern Hemisphere winter, driven by disruptions to flows through the Strait of Hormuz. Deliveries to the European Union and UK are about 4% lower than a year ago on a 30-day moving average, but have increased since early August when imports were 30% below last year's levels.

The price arbitrage for US LNG currently favors Europe over Asia, providing an incentive for Atlantic cargoes to remain in the region into October. Europe is projected to absorb about a quarter of global LNG supplies in September, up from less than 19% in July, according to Kpler.