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The European gas market is in a fever: the United States lifts export restrictions


January, 21 2025
watermark Economic news

After the lifting by US President Donald Trump of the ban on issuing new licenses for gas exports, volatility in the European market has increased significantly. This decision reduced the uncertainty around global supplies and affected quotes


Gas futures, which had previously risen by 2%, continued to fluctuate. The lifting of restrictions opened the way for new applications for LNG exports from the United States, and was accompanied by Trump's call for the European Union to increase purchases of American gas and oil. The United States remains the largest supplier of LNG to Europe.


The measures, although expected, partially alleviated concerns after an unstable start to the year. Japanese Trade Minister Yoji Muton noted that the situation could affect the tense global LNG market. Europe will face challenges in 2025, as it will need more LNG to compensate for lost Russian supplies through Ukraine.


According to the International Energy Agency, LNG imports to Europe could grow by more than 15% by 2025. Despite the diversification of supplies after the crisis three years ago, the cold winter has once again demonstrated the vulnerability of the region. An expected 40% increase in global LNG capacity by 2028 should help reduce gas prices by half.


Gas futures rose 0.3%, reaching 48 euros per megawatt hour.


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