Europe needs more long-term contracts for seaborne gas supply to hedge against soaring prices, said Elena Mazneva, head of Swiss energy company MET Group. European gas prices have more than doubled this year as the war in the Middle East has effectively cut off about a fifth of the world’s liquefied natural gas flows. Asian buyers are increasingly snapping up flexible spot cargoes — setting the stage for even fiercer competition between the regions this winter.

“A lot of long-term LNG supply globally goes to Asia, while Europe is still more spot-driven, and you can question how smart that is,” Chief Executive Officer Huibert Vigeveno said in an interview. “Having more long-term contracts in Europe would certainly have helped this year.” After losing most pipeline flows from Russia in 2022, Europe has increased its reliance on global LNG shipments, but utilities have been hesitant to commit to long-term contracts.

While Brussels has warned against over-reliance on American fuel, Asian LNG buyers are accelerating discussions to buy more LNG from the US as the war in Iran drags on. About 30% of the bloc’s LNG imports were spot-based in 2024, according to the EU Agency for the Cooperation of Energy Regulators.

“Even if Hormuz reopens, it will take at least three months for exports to ramp-up,” Vigeveno said, adding that prices risk rising again. MET is expanding and looking at potential transactions in northwest Europe, including Germany, and is considering opening an office in the US.