Uniper Downplays US LNG Reliance, Stresses Diversification

Uniper's Stance on US LNG Dominance

A top executive at German utility Uniper has downplayed concerns over Europe's increasing dependence on liquefied natural gas from the United States. Chief Commercial Officer Carsten Poppinga stated that while U.S. LNG's market dominance is an economic reality, diversification remains a critical strategy for managing portfolio risks.

European Market Overview

Europe's reliance on U.S. LNG has grown significantly, replacing volumes previously supplied by Russia. According to Kpler data, the European Union’s LNG imports from the U.S. reached nearly 60 million tons in 2025, almost four times higher than 2021 levels. In Germany, the United States accounted for 96% of all LNG imports received via its new terminals.

Future Outlook and Market Impact

Addressing fears of a potential supply glut from new projects, Poppinga expressed confidence that the market would rebalance, with rising demand from Asia absorbing new volumes. He anticipates long-term European gas prices will settle in the range of €20–25 per MWh. Uniper plans to expand its supplier base to include partners from the Middle East and Argentina.

Summary

Uniper acknowledges the foundational role of U.S. LNG in Europe's energy portfolio but emphasizes that a diversified supply chain is essential for long-term security. The company is actively seeking partnerships in different global regions to mitigate dependency risks.

FAQ

Q: Why is Uniper not concerned about relying on U.S. LNG?
A: The company deals with private U.S. firms rather than the government and views U.S. LNG as the most economical solution for Europe.

Q: What is Uniper's strategy to ensure energy security?
A: Uniper plans to diversify its LNG supply sources by signing deals with partners from various regions, including the Middle East and Argentina.

Source: investing.com