Europe could get a demand boost from the US after Russia invaded Ukraine.
According to the International Energy Agency, Russia is a major gas exporter to Europe, accounting for about one-third of the European Union and the UK's demand in 2021.
Most of the Russian gas to Europe is transported through the Ukraine, which could be damaged in the war. Natural gas supply to Europe may be cut off if the Kremlin retaliates against Western sanctions.
The conflict is encouraging gas buyers to look for supply outside of Russia.
The supercooled version of natural gas that can be transported on ships over long distances was already on the way up before the war in Ukraine.
Europe was the top importer of US LNG for the third straight month in February, accounting for nearly three-quarters of exports, according to preliminary vessel tracking data from Refinitiv.
Natural gas prices have risen with benchmark futures on the New York Mercantile Exchange up 25% year-to-date. The share price of Cheniere Energy has increased 26% year-to-date.
Europe would be hard-pressed to replace all of the Russian gas it imports even with an increase in US and other US exports of liquified natural gas. The gas has to be converted back into gas at the terminals before it can be transported again.
In January, Europe's regasification capacity was at 100%, according to the company.
Two new terminals were announced by Germany earlier this week. The country scrapped plans for a gas line after Putin sent troops into Ukraine.
According to the US Energy Information Administration, the US is expected to be the world's largest exporter of the commodity by the end of the year.
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