Bloomberg: US LNG developers face weak European demand

US liquefied natural gas (LNG) developers are finding it increasingly difficult to secure long-term supply contracts in Europe, despite previously viewing the region as the cornerstone market for a new wave of export projects, according to Bloomberg.

Industry executives said US gas exporters have returned from recent meetings and conferences with European counterparts largely without firm commitments, despite ongoing interest in potential deals.

While discussions have continued, they said buyers are showing growing reluctance to lock into long-term agreements amid concerns over dependence on US energy supplies.

According to Bloomberg, only one long-term LNG contract has been signed between US exporters and European buyers since the start of this year, with Greece being the sole counterparty. This compares with five such agreements concluded with European customers last year.

European companies are increasingly seeking to diversify their gas imports, particularly by expanding supplies from Norway and Qatar, while also relying more heavily on the spot market.

By Sabina Mammadli