US LNG Cargoes Target Europe Over Asia

It became more profitable to send US LNG to Asia rather than Europe a few weeks ago, but the premium has been insufficient to lure cargoes away.

• Around 68% of the LNG exported by the US last week is headed to Europe, while 27% is en route to Asia, according to Kpler.
• The market expects LNG demand from Asia to increase as Chinese lockdowns continue to ease but so far it has been muted in the region against plentiful stocks and warm weather.
• Europe meanwhile has been relying on buoyant LNG supply to weather its energy crisis this winter though warm weather has prevented any significant squeeze on gas stocks.
• The market this winter heavily depends on temperature outlooks in both regions, while vessels may be positioning themselves for the expected restart of Freeport LNG.