US LNG Exporters Struggle to Secure Long-Term Contracts in Europe
US liquefied natural gas (LNG) exporters are facing difficulties in securing long-term contracts from European buyers, a crucial market for their next generation of export projects. This shift is attributed to growing concerns among European utilities about becoming overly reliant on US LNG supplies.
A lack of new commitments has significant implications for future projects as developers need attractive offtake contracts to balance the cost of building with project economics. The uncertainty in the market, coupled with increasing demand in Asia, may alter the focus for US exporters.
European companies have expressed reservations about committing to contracts extending into the 2040s due to decarbonization targets and expectations of declining gas demand. Charbel Abi Daher, chief commercial officer for gas and LNG at Uniper SE's global commodities arm, stated that customers are unlikely to commit easily to such long-term agreements.