US LNG exports flock to Europe in February, with the UK a top destination

The UK was the top destination for US LNG cargoes delivered in February, as US exports of the heating and power generation fuel to Europe dominated the region's supply mix during the month, S&P Global Commodity Insights data showed March 3.

About 80% of the 128 US LNG cargoes delivered in February landed in Europe, plus Turkey, as netbacks to the region and low shipping rates continued to incentivize cargoes to stay in the Atlantic.

The UK received 24 US LNG cargoes in February, followed by Turkey with 21, then France and Spain, each with 12, and the Netherlands with eight, the data showed. US volumes accounted for about 58% of Europe's imports during the month, just shy of the record market share set in January.

European natural gas prices remained high in 2025 because of factors that include the rapid drawdown of the region's storage levels this winter and the loss of about 15 Bcm/d of pipeline gas from Russia following the expiration of the Russia-Ukraine transit agreement at the end of 2024.

The EU's storage levels were about 38% full as of March 1, down from about 62% full at the same time a year ago, according to data from Gas Infrastructure Europe.

At the same time, some market sources headed into late February seeing opportunities for arbitrage, which led to an increase in US LNG cargoes flowing to Asia in the months ahead.

Platts, part of Commodity Insights, assessed the April JKM benchmark price for spot LNG cargoes delivered into Northeast Asia at t $13.80/MMBtu March 3, down 11.7 cents from Feb. 28 amid sufficient supply and tepid demand.

In Europe, Platts assessed the DES Northwest Europe Marker for April at $13.234/MMBtu March 3, up 30.9 cents/MMBtu from Feb. 28.

Across the Atlantic, Platts assessed the FOB Gulf Coast Marker for US cargo loading 30-60 days forward at $12.90/MMBtu March 3, up 49 cents from Feb. 28.

Traders attributed the rise to shifting market sentiment after the breakdown of a Feb. 28 meeting between US President Donald Trump and Ukraine President Volodymyr Zelensky tempered expectations that some Russian pipeline gas could return to Europe as part of the efforts to end the war in Ukraine.

In Europe, speculation about the return of Russian flows and a potential easing of the EU's storage has put prices under pressure in recent weeks. The European Commission is expected to propose an extension of the EU's gas storage regulation in the coming weeks, and some member states have called for more flexibility around filling storage targets.

EU rules require member states to fill their gas storage sites to 90% of capacity by Nov. 1.

US LNG feedgas demand in February reached an average 15.9 Bcf/d in February, marking a record high, with a single-day record of nearly 16.8 Bcf/d reached Feb. 23. Output along the US Gulf Coast is expected to keep rising in 2025 as two projects undergoing commissioning — Venture Global's Plaquemines LNG terminal in Louisiana and Cheniere's midscale expansion of its Corpus Christi LNG terminal — ramp up production.