Europe’s gas prices collapse 90% as U.S. LNG reshapes the energy market
European gas prices have plunged by over 90% since their 2022 peak, dropping to around €27 per megawatt-hour. This sharp decline follows a surge in liquefied natural gas (LNG) shipments from the United States, which now supplies more than half of the EU’s LNG imports. The shift has reshaped the continent’s energy market as households begin to see lower costs reflected in flexible tariffs.
The European Union has increasingly relied on U.S. LNG to meet its natural gas needs. In the first half of this year, 72% of all American LNG exports went to Europe, making the U.S. the bloc’s largest LNG supplier at 57.7% of total imports. Norway remains the top pipeline supplier, covering 50.8% of the EU’s pipeline gas, while Algeria and Qatar also contribute significant volumes. Russian gas imports, though sharply reduced, still account for a small share, with the EU aiming to phase them out entirely by 2027.
The EU’s gas market has stabilised at levels not seen since mid-2021, driven by a flood of U.S. LNG and reduced dependency on Russian supplies. With prices at €27 per megawatt-hour, households on flexible tariffs are benefiting from the decline, while the bloc’s energy mix continues to shift. The trend highlights Europe’s growing reliance on overseas LNG as it moves toward eliminating Russian gas by 2027.
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