At the Budapest LNG Summit, senior US energy envoy Lawrence Korb delivered a forceful message to European leaders: lock in long-term supply agreements with American liquefied natural gas (LNG) producers or risk leaving energy security to chance, according to bne IntelliNews.
The event, attended by over 150 industry and government representatives from 25 countries, underscored Washington’s ambition to cement its role as Europe’s primary energy partner. Korb, a senior adviser to the US State Department’s Bureau of Energy Resources, outlined the Trump administration’s three-pronged LNG strategy: expanding into new markets, ensuring unfettered access for US suppliers, and reinforcing global energy security.
Europe has consistently been a top export market for US LNG since 2016. About half of all American LNG exports have gone to Europe, and there’s still room for growth.
With US export capacity set to more than double by 2030 (from 123 billion cubic metres in 2023 to 270 bcm), Europe remains a critical destination. Shipments have surged in recent months, with 70% of US LNG flowing to Europe in February, climbing to nearly 85% by March.
Despite rising imports, Korb warned that Europe’s fragmented infrastructure risks undermining its energy security.
If US LNG imported to France, Spain, Germany or Croatia cannot reach every corner of the continent, or if capacity bookings are too difficult, American exporters miss an opportunity, and European buyers lose access to a reliable and competitively priced product.
Call for long-term contracts
The US is actively supporting regional projects, including floating LNG terminals (FSRUs) and interconnectors like the Bosnia-Croatia link, but urged faster EU action. Korb also pressed European nations to sign multi-decade LNG contracts with US firms, arguing that stable pricing would shield industries and consumers from volatility.
The United States is the most reliable energy supplier in the world. Europe needs secure energy to grow its economy.
The summit also featured a proposal from MET Central Europe’s Gergely Szabó, who challenged Europe’s reliance on the erratic Dutch TTF benchmark. Instead, he advocated partial indexing to the US Henry Hub, citing its price stability and liquidity.
Anyone who pegged their contract to Henry Hub back in 2019 or 2020 was in a much better position than companies relying on TTF-based agreements. It was simply cheaper and carried less risk.
Meanwhile, Shell Energy’s Jefferson Edwards warned that despite record gas demand in 2024, the LNG sector faced a “terrible year,” with growth driven chiefly by pipeline supplies. Shell forecasts annual LNG demand growth exceeding 3% through 2040, fueled by Asia where China and India could add 800 million tonnes of import capacity by 2030.
