The biggest US exporter of liquefied natural gas (LNG), Cheniere Energy, has warned that limited supplies worldwide mean this winter could be really, really tight.
According to Reuters, Cheniere, which has sent 70% of its output to Europe this year, also said that a resurgence in Chinese LNG demand would exacerbate the energy crisis.
At the end of the day, what’s going to decide how tight the market will be is how cold it is and how government policies, industry rationing work, Cheniere’s executive vice president for worldwide trading, Corey Grindal, said at a Gastech conference on Thursday.
Grindal noted that for now the current price environment indicates that LNG supplies will continue to go to Europe. Prices, which were $2 per million British thermal units (MMBtu) in 2020, have rocketed 2,750% to $57 per MMBtu in August, 2022.
The US regime has stepped up exports of the fuel to the EU this year, taking advantage of elevated prices in the region.
China has also been supplying leftover LNG to the EU, as its zero-Covid-19 policies are still weighing on domestic demand, according to Bloomberg.
Analysts, however, warn that a total Russian gas shutoff would send the EU into an energy crisis that would last multiple winters.
Natural gas deliveries from Russia’s Nord Stream pipeline to the bloc remain cut off indefinitely due to maintenance issues. According to the Kremlin, technical issues with gas deliveries via the pipeline will persist until the West lifts its evil sanctions on Russia.
RT. com / ABC Flash Point Oil & Gas Blog News 2022.
Please take note, that “China has also been supplying leftover LNG to the EU”, this means that China bought the Russian product in order to mark up the price and sell it to the EU. The EU is acting in a profoundly juvenile manner by not opening the Nord Stream 2 pipeline. Buying Russian fuel that has been laundered in the gouging shell game is not virtue signaling. It is sheer stupidity. If the leaders of the EU were not so corrupt they would open the NS2 but they are getting a cut in on the profits from the China… Read more »
In retaliation for America support of Israel in the 7 day war, OPEC embargoed (sanctioned) oil supply to America. Oil rocketed from $3 (1970) to $30 by 1980. America’s economy was chaotic. Now Russia has sanctioned Europe’s Gaz causing an even worse price rise. The residual effect will be worse than the 1970s inflation in America.