Europe Hesitates on Long-Term U.S. LNG Deals

The reluctance persists even as the global market tightens and the European Union works toward a total phase-out of Russian gas by 2027. Under existing mandates, the EU has already banned spot-market Russian LNG imports as of April 25, with a comprehensive prohibition on all Russian gas slated for late 2027. Forecasts from the Institute for Energy Economics and Financial Analysis suggest that without diversification, the EU could draw 80% of its LNG from the United States by 2028.

To hedge against this concentration, European utilities are exploring alternatives, including interest in Canada’s Ksi Lisims LNG project. The facility, led by Western LNG, is currently seeking off-take commitments for an additional 3 to 4 million tons of annual production. By looking toward other suppliers, European firms signal a clear preference for a fragmented import landscape over a singular, heavy reliance on U.S. infrastructure.