LNG’s Next Big Threat Isn’t Demand—It’s U.S. Policy

Irina Slav, a writer for Oilprice.com with extensive experience in the oil and gas sector, reported that while LNG demand has decreased after winter, U.S. exports to Europe remain high compared to 2024 levels. Concerns have arisen over a potential disruption in exports due to a ban on Chinese-built ships at U.S. ports, as there are no U.S.-built LNG tankers available. Shipping limitations may clash with increasing demand, particularly as Europe aims to replenish gas storage and reduce dependence on Russia.

The post-winter decline in heating demand in the northern hemisphere has led to weakened demand for LNG in key markets like Asia and Europe. Despite Europe importing a record amount of LNG from the U.S. last month, the numbers have decreased this month, although they still surpass last year’s averages. The U.S. has become a significant supplier, accounting for 55% of Europe’s total LNG imports in 2025.

While Europe has managed to reduce overall gas imports through demand reduction, Russian gas still plays a substantial role in the import mix. In Asia, China suspended LNG imports from the U.S., prompting American exporters to seek alternative buyers. Trump’s trade policies have boosted global LNG demand, but challenges loom, such as restrictions on Chinese-built ships at U.S. ports, posing a hurdle for LNG exporters.

The tight availability of LNG tankers due to surging demand presents a challenge, as U.S. exporters lack local carriers. The situation may worsen unless adjustments are made to the port fee rule to ensure uninterrupted flow of U.S. LNG abroad. With Europe needing to refill storage and increase LNG imports, costs may rise, impacting price dynamics. While U.S. LNG exporters face uncertainties, resolving the port fee issue could pave the way for smoother operations.

Irina Slav’s analysis on Oilprice.com highlights the complex interplay of factors shaping the LNG market and the challenges and opportunities facing industry players in the evolving global landscape.