Hormuz Crisis Boosts European LNG Imports Ahead of Winter

European imports of liquefied natural gas are on the rise ahead of the Northern Hemisphere winter, driven by disruptions to flows through the Strait of Hormuz and increasing competition for the fuel.

LNG deliveries to the European Union and UK have increased since early August, when imports were 30% below last year's levels. However, they remain about 4% lower than a year ago on a 30-day moving average, according to ship-tracking data compiled by Bloomberg.

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.