By Marcy de Luna

HOUSTON (Reuters). Despite the fact that U.S. liquefied gas (LNG), exports rose almost 16% in September to a new record level, preliminary Refinitiv data shows, Europe still dominates.

U.S. LNG has been in great demand since Russia’s invasion of Ukraine. However, Europe is also trying to reduce gas imports from Russia and rebuild their low inventories.

According to Refinitiv. The U.S. LNG exports all over the world amounted to 7.43 Million tonnes (MT). This is an increase from February’s 6.4 MT and surpasses January’s record of 7.25 million tonnes.

The fourth straight month saw Europe become the largest importer of U.S. LPG, accounting for about 65% U.S. Exports. According to data, 12% of U.S. exports were to Asia while 3% went to Latin America. 20 vessels, responsible for about 20% of the volume, had not yet indicated their destination.

Reid I’Anson is a senior commodity analyst with Kpler. He stated, “The U.S. still emphasizes European buyers.”

MORE GAS NEEDED

Although U.S. LNG exports have increased since November, analysts believe that more work is required as European gas inventories are only 25% full. This compares with the average 5 year of 34%.

According to the European Commission, inventories should be at least 80% by November 1, in order to keep winter heating season alive.

Germany said in February that it plans to build LNG import terminals, and expand its reserve capacity to lessen dependence on Russian natural gas.

“In order to manage risks, European countries must follow Germany’s example and start a procedure to ration gas demand and prepare for an eventual supply cut,” said Vinicius Romano, an analyst at the Norwegian consultancy Rystad Energy.

Data from the Refinitiv Vessel Tracking service shows that 19 LNG tankers could be nearing or heading to U.S. Gulf Coast terminals by Friday.

In March, global LNG prices were high. However, European LNG still draws demand from Asia. According to Refinitiv., the benchmark for European LNG was $39.22 per Million British Thermal Units (mmBtu) this week. This compares to $28.61 per week in February.

Asia spot gas was traded this week at $35.00 per millimeter of Btu according to Refinitiv. This is down from $37.50 for the same period last February.