Rising imports from China are helping to reduce the large surplus of supply, and LNG prices are rising again, marking an end to a several-year downturn in the market.
While U.S. LNG will play second fiddle to pipeline gas from Russia in the European market, the mere fact that Gazprom has granted pricing concessions is a sign that Europe's LNG imports are having a significant effect.
The growing oversupply in LNG export capacity has weighed on prices for the key market in Asia, pushing spot prices down by about two-thirds in less than two years. Excess supplies will likely kill off an array of LNG export terminals that have not yet moved forward with final investment decisions.
In the wake of the crisis and violence in Ukraine, the EU stepped up its search for alternative supply sources to trim its dependence on imported Russian natural gas, but solutions such as imported LNG provide only marginal energy security gains.