More European Contracts Coming

Wave of Long-Term European LNG Contracts Seen Likely This Year (NGI)

Jamison Cocklin (Jan. 06): European offtakers in 2023 are expected to continue the LNG activity that closed out 2022, as more import infrastructure comes online, larger buyers recapitalize, and policies become clearer… USLNG projects are poised to benefit most… Sponsors signed long-term agreements in 2022 to supply nearly 50 mtpa (mainly to Asian buyers and portfolio players), but European offtakers accounted for only 11.4 mtpa of the total. Europe needs anywhere from 50-75 mtpa of long-term LNG supplies from the United States to help replace Russian imports. Many European countries have been building more LNG import capacity. It was a necessary step before buyers could “really settle into long-term deals,” said LNG Allies CEO Fred Hutchison. Nowhere is that more evident than in Germany, Europe’s largest gas consumer… The country has chartered six FSRUs and is working to support construction of its first onshore import terminals at breakneck speed. Hutchison: “I think things are about as far advanced as they can be in Germany given when this crisis began in Feb. 2022. My view is that there has been a lot going on behind the scenes, and we’ll start to see more announcements early in 2023.” Link to Content