The United States is one of the largest LNG exporting countries in the world after Qatar and Australia, as per historical trade data and records. However, the USA is emerging out as the biggest LNG exporting country, higher than Qatar and Australia, its two competitors’ countries, for 2022. Or maybe there are more speculations about that?
The primary reason for this is the USA’s single biggest market for LNG exports, which is the European Union and its member countries. In 2021, almost 26% of all the US’s LNG exports accounted for the European Union and its member countries, amounting to $6.46 billion. Due to the Russian invasion of Ukraine, US LNG exports have risen significantly higher than before.
US LNG Exports, 2021
As per Forbes, LNG is going to be the most valued and essential commodity as the rising concerns towards climate change will replace fossil fuels like coal in the near future. The US is increasingly having high exports for its LNG each year, so much so that its production increased in the November previous year.
The US LNG exports shown below provides a glimpse into the US LNG market and its exports on a global scale for the year 2021. The vast majority of the US LNG exports accounted for $3.35 billion worth of exports in December 2021.
Rising US LNG Exports to the EU
According to the U.S. Energy Information Administration, the US, Qatar, and Russia combined accounted for almost 70% of Europe’s total energy imports in 2021. The USA emerged out as the single largest exporting country for the EU’s natural gas market, with almost 26% of the total exports by the member countries of the European Union.
Amid the Russian-Ukraine war, the USA has found its way to become the largest exporting country for LNG; not by increasing shipments but due to the high rising demand from its one of the single-largest export markets in the world, i.e., the European Union and its member states.
The below shown global import-export data represents the values of US LNG exports to the EU for three consecutive years, in a quarterly division. The comparison provided here implies that even before the war of 2022, and the sudden supply chains boost in the post-pandemic era, the values of the US LNG exports to the EU are rising considerably each consecutive year.
2021 recorded almost the double values of 2020, during the pandemic when the rising demand of commodities despite the halted state of international trade existed in many countries. The US has played a big part in fuelling the EU’s natural gas inventory for this year, as per many sources.
The bottleneck supplies and shortage of LNG in the European countries prevailed way earlier than the commencement of the Russian invasion of Ukraine. The storage inventories getting exhausted and prices considerable rising high due to the war propelled the demand in the EU during its “winter energy crisis” which will not outlive to 2022 since winter is near to an end.
However, according to our trade data analysts, with the rising demand and fear of prices amid the Russia-Ukraine war, the exports from the US to the EU for LNG might grow. US LNG exports have grown significantly high each year, even before the introduction of COVID-19 in 2020. Hence, it comes more than strong evidence that the US will outperform its competitors.