US Energy Secretary Chris Wright has confirmed that US liquefied natural gas (LNG) exports to Europe are expected to continue their upward trajectory, according to a report by Reuters.
The US, currently the world’s largest LNG exporter, has significantly increased its supply to Europe following the decrease in Russian gas due to the conflict in Ukraine.
But the political uncertainties introduced by US President Donald Trump’s approach to trade, which includes using energy as leverage, have left businesses wary of relying on the US.
The reliance on US LNG has become a point of contention for some European executives, with discussions about the strategic value of re-introducing Russian gas into Europe’s energy mix, including supplies from Gazprom.
However, Wright refrained from commenting on the likelihood of Russian energy making a significant comeback in European markets.
“The US supply will continue to grow in a meaningful way. There’s a lot of dialogue about contracts,” Wright stated, suggesting a strong potential for more European off-take agreements.
Poland has been diversifying its energy sources, replacing Russian gas with LNG deliveries to its Swinoujscie terminal and pipeline gas from Norway via Denmark and the Baltic Sea.
Poland has also begun facilitating the delivery of US-sourced LNG to Ukraine.
The National Bank of Ukraine recently projected the need for $2.9bn to fund gas imports in 2025, following severe damage to the nation’s gas production facilities.
The late winter and early spring attacks by Russian forces have led to a substantial 40% reduction in gas production, though some capacity has been recovered since then.
