Bloomberg: European companies shun long-term contracts for American LNG

American liquefied natural gas exporters are struggling to find European buyers willing to sign long-term supply contracts.

This is reported by Bloomberg, citing industry representatives.

Despite growing interest in American LNG, potential customers are wary of Europe’s increasing dependence on U.S. supplies amid deteriorating relations between Washington and its European allies. Another deterrent is the push for economic decarbonization: many companies are reluctant to take on long-term commitments given uncertainty over future gas demand.

Instead of long-term contracts, European buyers prefer to purchase fuel on the spot market — at current market prices and without long-term obligations.

“European buyers are increasingly favoring the spot market over long-term commitments, as they are uncertain what gas demand will look like in a decarbonizing economy. Many companies are not willing to sign contracts that will run into the 2040s,” Bloomberg wrote.

According to the agency, due to waning interest from Europe, American suppliers are increasingly redirecting their focus to Asian markets — in particular, Taiwan and India.

Bloomberg had previously warned of the risk of oversupply in the LNG market in the future, which could lead to lower energy prices. The agency noted that the market is facing a third wave of LNG plant expansion worldwide, which experts expect to last from 2026 to 2030 and result in a supply glut.