Europe is expected to continue paying exorbitant prices to attract LNG cargoes next year, particularly given how limited new supplies of the super-chilled fuel will be.

Export Projects

A decline in sanctioned projects over the last decade during a low price environment and underinvestment in fossil fuels means new liquefaction capacity may be scarce until 2025, when new U.S. terminals and Qatari liquefaction trains ramp-up to drive further growth. 

The lack of new capacity is likely to keep liquefied natural gas prices elevated in the near-term, speakers said last month at the North American Gas Forum in Washington, DC. In addition, Europe’s reluctance to sign long-term contracts will also leave it exposed to higher prices on the spot market longer-term, executives said.

“You can bail...