Ukraine war fuels European and Asian scramble for U.S. LNG

Early bird buyers secure long-term contracts at double the pace of last year

A tanker at Venture Global LNG's Calcasieu Pass terminal in Louisiana. American gas has become a hot commodity amid the war in Ukraine and the global economic recovery from COVID-19. (Photo by Ryosuke Hanafusa)

RYOSUKE HANAFUSA, Nikkei staff writer

May 20, 2022 02:05 JST

HOUSTON, U.S. -- Russia's invasion of Ukraine has sent European and Asian buyers rushing to buy American liquefied natural gas, in some cases securing output from new projects still years away from production.

So far in 2022, U.S. producers have signed long-term contracts of 15 years or more for an annual 20 million tons of LNG -- roughly double the full-year tally from 2021. The figure is equivalent to almost a quarter of annual LNG imports by Japan, the world's second-largest buyer of the fuel.