Exclusive: Europe tops buyers for U.S. LNG with winter cargo influx

[nitpicker]

Last edited Mon Jan 28, 2019, 06:12 AM - Edit history (1)

https://uk.reuters.com/article/uk-lng-usa-europe-exclusive/exclusive-europe-tops-buyers-for-u-s-lng-with-winter-cargo-influx-idUKKCN1PJ0YN?il=0

January 25, 2019 / 5:29 AM / Updated 6 minutes ago

Exclusive: Europe tops buyers for U.S. LNG with winter cargo influx

Ekaterina Kravtsova, Sabina Zawadzki

LONDON (Reuters) - Energy companies are flooding Europe with U.S. natural gas, establishing a foothold in a market dominated by Russia and seen as a key battleground in Washington’s efforts to curb Moscow’s energy influence. Europe is now the top buyer of U.S. liquefied natural gas (LNG) after a near fivefold spike in U.S. LNG sales to the continent this winter, overtaking South Korea and Mexico, a Reuters analysis showed. Profit rather than politics is driving the increase, despite pressure from U.S. President Donald Trump for Europe to wean itself off Russian gas.

Energy companies have switched sales to Europe after prices in Asia fell sharply on lower-than-expected demand. Prices in Europe, traditionally seen as a market of last resort, have held firm.

“It’s all about commercial reasons,” said James Henderson, director of the natural gas research programme at the Oxford Institute for Energy Studies. “U.S. LNG will go where there is the biggest margin.” “There is no political motive here.”

U.S. LNG shipments to Europe totalled 3.23 million tonnes, or 48 cargoes, in October to January, compared to 0.7 million tonnes, or nine cargoes, a year ago. The United States is currently second only to Qatar, the world’s largest LNG producer, as an LNG supplier to Europe, Refinitiv Eikon data showed. The figures have not previously been reported.
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