The USA has tied with Europe tin the LNG Trade. Trump is warning to export more
Trump warned the EU:
-You should buy more natural gas and oil from us ,otherwise….
Dursun Yıldız
Director
Hydropolitical Academy
February 24, 2025
In 2012, the US Congress commissioned a report on the EU’s energy dependence on Russia and its reduction. Due diligence has been done. Conditions have matured. The USA entered the EU’s LNG market in 2018. Later, as planned, the USA, with the influence of the Russia-Ukraine war, moved the EU away from Russia’s energy dependence and tied it to itself. With the influence of this geopolitical game, the USA created a large and continuous LNG market for itself in Europe. This development also relieved the US shale gas and shale oil sector, which is seeking to open up to foreign markets. The fact that the EU’s energy prices are five times those of the USA has made the European market very attractive for the US Energy sector. Plans for new markets were needed for the US energy sector, which continued to develop rapidly as planned despite the European market. As a result, the USA also entered Far East Asia, the world’s largest LNG market. However, in that region, there are countries such as Malaysia, Indonesia, Russia, Qatar and Australia that offer low prices with the advantage of geographical proximity to the market.
USA’s LNG production and number of export terminals are increasing
The increase in the number and capacity of natural gas liquefaction facilities in the United States has driven growth in global LNG trade. The increasing LNG demand in Europe due to the embargo on natural gas exports from Russia to the EU also contributed to the growth of this market. The number of LNG filling terminals in the USA is increasing rapidly. Plaquemines LNG, the eighth liquefied natural gas (LNG) export terminal of the USA, entered operation in December 2024. When the other stages of this terminal are completed, the total export capacity of the USA will increase to 15.4 billion cubic feet per day. It is estimated that the LNG export capacity will increase to 21.2 billion cubic feet per day by 2028.
USA has become the world’s top LNG exporter since 2022
US LNG exports in 2022 are up 16% compared to 2021. In the first half of 2022, the United States became the world’s top LNG exporter for the first time after a new LNG export facility came into operation. When one of the LNG export facilities in the USA went out of operation, Qatar and Australia remained the top two global LNG exporters in the second half of 2022. However, the USA’s role as the world’s top exporter in the LNG market continued in 2023 and 2024.
USA’s largest LNG market is Europe
Among the LNG importing regions in the world, Europe (including Türkiye) was the region with the largest increase in LNG imports globally. .LNG imports of the EU-27 countries and the UK in 2022 increased by 73% (6.3 BCF/D) compared to 2021. This increase has greatly reduced the EU’s dependence on the Russian natural gas pipeline. France, the UK, Spain, the Netherlands and Belgium accounted for 85% of the total increase in LNG imports, with 5.4 billion cubic feet per day.
Trump Made the First Agreement
After July 25, 2018, when EU President Juncker and US President Trump agreed to strengthen EU-US relations, the EU’s imports of liquefied natural gas (LNG) from the US increased rapidly. The share of the USA in the EU’s total LNG imports was 2.3% in 2016 and 43% in 2024.
Germany started purchasing LNG from the USA after 2022
Germany, the EU country most dependent on Russian Federation natural gas, started buying LNG from the USA in 2022 and imported 204 billion cubic feet of liquefied natural gas in 2023 and 210 billion cubic feet in 2024.
EU countries have been making intense efforts to reduce their dependence on energy supplies from Russia since it began occupying Ukraine three years ago, leading to a sharp increase in LNG imports. This increase brought natural gas and LNG prices to record levels, especially in the European market. The USA is the EU’s first LNG supplier. Russia is still in second place. Brussels wants to reset its dependence on Russia by 2027. Trump does not want to see any country other than the USA in this market.
41% of EU’s natural gas came from LNG in 2023
By 2023, the EU’s total natural gas consumption was approximately 300 billion cubic meters, and approximately 41% of this consumption was met through liquefied natural gas (LNG) imports. This rate shows the increasing importance of LNG in the EU energy basket. In 2024, the total natural gas consumption of the European Union (EU) decreased to the lowest level in the last 11 years. Between August 2022 and May 2024, EU gas use decreased by 18% (138 billion m3). Overall, the share of LNG in Europe’s total gas consumption in 2024 is recorded as 30%.
In 2023, the USA sent 65% (56.5 million tons) of its total LNG production to Europe. This amount decreased to 43.8 million tons in 2024.
The EU’s dependence on Russian natural gas and LNG, which was 45% in 2021, decreased to 18% in 2024. While the USA had a 25% share in the European LNG market in 2021, this rate increased to 43% in 2024. In 2024, the USA stood out as the country with the largest share in the EU’s LNG imports and reinforced its leadership in global LNG exports.
Turkey’s LNG Imports from the USA also increased rapidly
Turkey’s LNG imports from the USA started at 8.7 billion cubic feet in 2016 and reached 30 billion cubic feet in 2019, then increased rapidly and reached 192 billion feet 3 in 2022 and approximately 180 billion feet 3 in 2024.
The USA withdrew its support. Eastern Mediterranean Gas Project put on hold
East Med, initiated by Greece, Israel and the Greek Cypriot administration, regarding the bringing of Eastern Mediterranean gas to the EU. project report preparation stopped in 2022. The USA announced that it was withdrawing its support for the Eastern Mediterranean Natural Gas Pipeline Project (EastMed) in January 2022, causing the project to be shelved for now. This brought the European market closer to the USA and increased LNG trade.
Trump Warned the EU;
The amount of natural gas production in the USA and the number of LNG export terminals are increasing. This means creating an additional market. The USA is trying to increase its share in the Asian market. However, in that region, there are countries such as Malaysia, Indonesia, Russia, Qatar and Australia that offer lower prices with the advantage of geographical proximity to the market. Therefore, developing the European market is important for the EU. Before Trump took office in January, he warned the EU that it would face trade tariffs unless it imported more oil and natural gas from the United States.
Energy Prices in Europe are High
Executive Director of the International Energy Agency, Dr. Fatih Birol said, “Energy prices in Europe are significantly higher compared to major economic powers such as the USA, China and India. On average, natural gas prices in Europe are 5 times those of the USA and electricity prices are 4 times those of China.” Stating that exports are the backbone of the European economy, Birol emphasized that the EU continues to be the largest exporting economy in the world, leaving behind the USA and China. But he also warned that the high cost of energy was eroding Europe’s competitiveness in global trade. As a result, it is claimed that the European economy, especially the industrial sector, will face a serious crisis if it cannot find cheap energy. On the other hand, the EU’s dependence on the USA for energy is increasing. The energy source from the USA is not cheap. The EU continues to seek solutions to this dilemma.
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The USA has tied with Europe tin the LNG Trade. Trump is warning to export more
Trump warned the EU:
-You should buy more natural gas and oil from us ,otherwise….
Dursun Yıldız
Director
Hydropolitical Academy
February 24, 2025
In 2012, the US Congress commissioned a report on the EU’s energy dependence on Russia and its reduction. Due diligence has been done. Conditions have matured. The USA entered the EU’s LNG market in 2018. Later, as planned, the USA, with the influence of the Russia-Ukraine war, moved the EU away from Russia’s energy dependence and tied it to itself. With the influence of this geopolitical game, the USA created a large and continuous LNG market for itself in Europe. This development also relieved the US shale gas and shale oil sector, which is seeking to open up to foreign markets. The fact that the EU’s energy prices are five times those of the USA has made the European market very attractive for the US Energy sector. Plans for new markets were needed for the US energy sector, which continued to develop rapidly as planned despite the European market. As a result, the USA also entered Far East Asia, the world’s largest LNG market. However, in that region, there are countries such as Malaysia, Indonesia, Russia, Qatar and Australia that offer low prices with the advantage of geographical proximity to the market.
USA’s LNG production and number of export terminals are increasing
The increase in the number and capacity of natural gas liquefaction facilities in the United States has driven growth in global LNG trade. The increasing LNG demand in Europe due to the embargo on natural gas exports from Russia to the EU also contributed to the growth of this market. The number of LNG filling terminals in the USA is increasing rapidly. Plaquemines LNG, the eighth liquefied natural gas (LNG) export terminal of the USA, entered operation in December 2024. When the other stages of this terminal are completed, the total export capacity of the USA will increase to 15.4 billion cubic feet per day. It is estimated that the LNG export capacity will increase to 21.2 billion cubic feet per day by 2028.
USA has become the world’s top LNG exporter since 2022
US LNG exports in 2022 are up 16% compared to 2021. In the first half of 2022, the United States became the world’s top LNG exporter for the first time after a new LNG export facility came into operation. When one of the LNG export facilities in the USA went out of operation, Qatar and Australia remained the top two global LNG exporters in the second half of 2022. However, the USA’s role as the world’s top exporter in the LNG market continued in 2023 and 2024.
USA’s largest LNG market is Europe
Among the LNG importing regions in the world, Europe (including Türkiye) was the region with the largest increase in LNG imports globally. .LNG imports of the EU-27 countries and the UK in 2022 increased by 73% (6.3 BCF/D) compared to 2021. This increase has greatly reduced the EU’s dependence on the Russian natural gas pipeline. France, the UK, Spain, the Netherlands and Belgium accounted for 85% of the total increase in LNG imports, with 5.4 billion cubic feet per day.
Trump Made the First Agreement
After July 25, 2018, when EU President Juncker and US President Trump agreed to strengthen EU-US relations, the EU’s imports of liquefied natural gas (LNG) from the US increased rapidly. The share of the USA in the EU’s total LNG imports was 2.3% in 2016 and 43% in 2024.
Germany started purchasing LNG from the USA after 2022
Germany, the EU country most dependent on Russian Federation natural gas, started buying LNG from the USA in 2022 and imported 204 billion cubic feet of liquefied natural gas in 2023 and 210 billion cubic feet in 2024.
EU countries have been making intense efforts to reduce their dependence on energy supplies from Russia since it began occupying Ukraine three years ago, leading to a sharp increase in LNG imports. This increase brought natural gas and LNG prices to record levels, especially in the European market. The USA is the EU’s first LNG supplier. Russia is still in second place. Brussels wants to reset its dependence on Russia by 2027. Trump does not want to see any country other than the USA in this market.
41% of EU’s natural gas came from LNG in 2023
By 2023, the EU’s total natural gas consumption was approximately 300 billion cubic meters, and approximately 41% of this consumption was met through liquefied natural gas (LNG) imports. This rate shows the increasing importance of LNG in the EU energy basket. In 2024, the total natural gas consumption of the European Union (EU) decreased to the lowest level in the last 11 years. Between August 2022 and May 2024, EU gas use decreased by 18% (138 billion m3). Overall, the share of LNG in Europe’s total gas consumption in 2024 is recorded as 30%.
In 2023, the USA sent 65% (56.5 million tons) of its total LNG production to Europe. This amount decreased to 43.8 million tons in 2024.
The EU’s dependence on Russian natural gas and LNG, which was 45% in 2021, decreased to 18% in 2024. While the USA had a 25% share in the European LNG market in 2021, this rate increased to 43% in 2024. In 2024, the USA stood out as the country with the largest share in the EU’s LNG imports and reinforced its leadership in global LNG exports.
Turkey’s LNG Imports from the USA also increased rapidly
Turkey’s LNG imports from the USA started at 8.7 billion cubic feet in 2016 and reached 30 billion cubic feet in 2019, then increased rapidly and reached 192 billion feet 3 in 2022 and approximately 180 billion feet 3 in 2024.
The USA withdrew its support. Eastern Mediterranean Gas Project put on hold
East Med, initiated by Greece, Israel and the Greek Cypriot administration, regarding the bringing of Eastern Mediterranean gas to the EU. project report preparation stopped in 2022. The USA announced that it was withdrawing its support for the Eastern Mediterranean Natural Gas Pipeline Project (EastMed) in January 2022, causing the project to be shelved for now. This brought the European market closer to the USA and increased LNG trade.
Trump Warned the EU;
The amount of natural gas production in the USA and the number of LNG export terminals are increasing. This means creating an additional market. The USA is trying to increase its share in the Asian market. However, in that region, there are countries such as Malaysia, Indonesia, Russia, Qatar and Australia that offer lower prices with the advantage of geographical proximity to the market. Therefore, developing the European market is important for the EU. Before Trump took office in January, he warned the EU that it would face trade tariffs unless it imported more oil and natural gas from the United States.
Energy Prices in Europe are High
Executive Director of the International Energy Agency, Dr. Fatih Birol said, “Energy prices in Europe are significantly higher compared to major economic powers such as the USA, China and India. On average, natural gas prices in Europe are 5 times those of the USA and electricity prices are 4 times those of China.” Stating that exports are the backbone of the European economy, Birol emphasized that the EU continues to be the largest exporting economy in the world, leaving behind the USA and China. But he also warned that the high cost of energy was eroding Europe’s competitiveness in global trade. As a result, it is claimed that the European economy, especially the industrial sector, will face a serious crisis if it cannot find cheap energy. On the other hand, the EU’s dependence on the USA for energy is increasing. The energy source from the USA is not cheap. The EU continues to seek solutions to this dilemma.
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