Disturbing European gas markets after the freezing of new American LNG export licences

European prices fluctuate following the US President’s announcement, according to which the moratorium on new export licences is defrosting, mitigating uncertainty about the long-term global offer. Future reporting performance contracts declined following the rise of more than 2% at the previous meeting. Trump canceled a measure introduced by his predecessor, clearing the way for applications for new permits to export liquefied gas from the US. The US President also reiterated the call to the European Union to buy more American oil and gas if the EU wants to avoid tariffs. The US is already Europe’s largest LNG supplier, according to Bloomberg. CORVERSE While the move for new licenses was widely expected, it helps alleviate some concerns after an unstable start of the year. “It could have an impact on the global LNG market, where supply and demand are structurally limited,” Japanese Trade Minister Yoji Muto said Tuesday. The change affects future projects and this year may still be challenging for Europe, as it needs more LNG to meet demand, especially after the loss of gas flows of the Russian pipeline crossing Ukraine. Imports of LNG from the EU could increase by more than 15% in 2025 after a fall a year ago and the balance of the global gas market remains fragile, the International Energy Agency said in a report today (21.1. 25). CORVERSE Europe was able to diversify its supplies from the energy crisis three years ago, but this heating season reminded its vulnerability. Cold weather – after two relatively mild winters – led to faster than normal depletion of gas reserves and prices in Europe remain high, prolonging the pain for consumers. During the next four years to 2028, an increase of 40% of the global LNG supply will lead Europe to solve many of its problems left by the crisis, “with gas prices likely to fall to half,” Citigroup Inc said in a note. The Dutch future future contracts, the European gas benchmark, negotiated 0.3% higher at EUR 48.00 per megawatt hour by 8:32 a.m. in Amsterdam.