LNG imports in northwest Europe and Italy rose by 9 billion cubic meters between April and September compared with the same period last year, BNEF data showed last week. But as the Nord Stream pipeline stops supplying and there is a risk of closure of the only operating gas pipeline between Russia and Europe, the gas gap in Europe could reach 20 billion cubic meters.
While U.S. LNG has played a key role in meeting European demand so far this year, Europe will need to seek other gas supplies and even be willing to pay higher prices for spot shipments.
U.S. LNG shipments to Europe have reached record levels, with nearly 70 percent of U.S. LNG exports destined for Europe in September, according to Refinitiv Eikon data.
If Russia does not supply most of the natural gas, Europe may face an additional gap of about 40 billion cubic meters next year, which cannot be met by LNG alone.
There are also some restrictions on the supply of LNG. First, the supply capacity of the United States is limited, and LNG exporters, including the United States, lack new liquefaction technologies; Second, there is uncertainty about where LNG will flow to. There is elasticity in Asian demand, and more LNG will flow to Asia next year; Third, Europe’s own LNG regasification capacity is limited.
Post time: Oct-31-2022