Europe buys the same batch of LNG twice, and each time at a higher price

The hopeless situation of need makes the person who got into it not go through all the conditions of the one who was able to use the circumstances to his advantage. It is impossible to defend against such abuse. Therefore, Europe, moving away from a conscientious supplier of energy resources - Russia, fell into the trap of infinitely greedy traders from the United States.

Recently it became known that an armada of LNG tankers allegedly cannot unload in the EU and is in the roadstead near the coastline of Spain. However, as Reuters found out, this is not a force majeure event, but a deliberate act. The gas flotilla is not unloading, not because it cannot get rid of the cargo, but because the captains of the ships have been instructed not to unload.

These tankers, as the agency assumes, stationed near the city of Cadiz, will remain in the road at least until the end of November, when the “gas armageddon” will just begin in Europe, which will allow the gas already bought by customers in the EU to be sold once again (the first delivery was carried out on a long-term basis). contract or paid futures), but already more expensive - by then buyers will have no choice, winter will come, and the deficit will do its job - tie the hands of Europeans.

The owners of the tankers standing in the roadstead have a cartel agreement - they understand that even if one vessel is unloaded, prices will fall and possible excess profit will not be received. So cargo owners have developed a "trading strategy" (as Reuters describes it) to stand idle until prices rise. For this reason, ships are being turned into floating storage facilities by their owners, further disrupting the market as a whole. Large companies such as Naturgy have been seen in these frauds: Castillo De Caldelas, Rioja and Iberia Knutsen, BP, Trafigura and Cheniere.

Most of the ships arrived with American LNG cargo, the rest is small from other countries. But even smaller suppliers are forced to play the game played by the big players in the overheated energy market.
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  1. prior Offline prior
    prior (Vlad) 28 October 2022 12: 11
    In the meantime, gas carriers are waiting for their superprofits on the outer roads of Cadiz, you, Europe, walk around the energy market with your hand outstretched, maybe you will find cheaper gas somewhere ....
    Show off, old lady.
    And all that was necessary was to give permission and open the valves of the Nord Streams.
    And you would be warm, and with light, and in chocolate.
    And now in semi-darkness, in a freezing apartment, in the pose "mother washes the floor."
    But in the company of an American rapist.
  2. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 28 October 2022 14: 21
    And, again, noodles for dummies ...
    quite recently they wrote that the storages are full, and there is nowhere to download ...
    It is logical that they asked to serve as additional storage afloat .... just a month
    And every "twice paid" ... someone often pays 2 times the cost, for example, for pizza delivery?
  3. Bakht Offline Bakht
    Bakht (Bakhtiyar) 29 October 2022 09: 02
    I doubt that the buyer pays twice. The gas was bought and paid for not by states, but by large gas companies. And what to do with it - they decide.
    And now a little arithmetic and logic.

    Gas carriers are off the coast of Spain and Portugal. But the Iberian Peninsula is practically not connected to European gas lines. This is the so-called "gas island of Europe". At the same time, the largest UGS facilities are located in Northern Europe (in particular, in Germany). And there is an extensive network of gas pipelines. That is a real opportunity to maneuver gas reserves. It's easier than ever to move gas carriers to Germany, Holland and the UK. There are quite a large number of regasification units, plus gas pipelines, plus underground storage facilities.

    And now some arithmetic. The average gas carrier is 100 million cubic meters of gas. 35 gas carriers is 3,5 billion cubic meters. There is a place for this gas in German UGS facilities. So it's not a problem.
    Freight gas carriers soared to 400 thousand dollars a day. That is, for one gas carrier, this makes 4 dollars per day per thousand cubic meters. For a month of downtime, a thousand cubic meters will rise in price by $ 120. Not so much for large gas companies.
    Third moment. Gas was purchased by futures in the summer and at a price of 2-2,5 thousand dollars per thousand cubic meters. No capitalist will sell it to consumers for a thousand dollars. This means that large gas companies are waiting for the gas price at the beginning of winter to be more than 2,5 thousand dollars. Whether their hopes will come true or not is unknown.

    The conclusion is that the lack of gas at the moment is an artificial shortage. Perhaps in a month or two this deficit will become real. But now no one will supply gas to consumers at a loss. Market, you know.

    And an addition. The German government is pushing through a 200 billion euro gas subsidy project. France (and Macron personally) reared up, arguing that this was a flagrant violation of free trade rules. Strictly speaking, these 200 billion will be paid by the German government to gas companies. From budget funds. That is, from the pocket of taxpayers. If only the gas companies did not go bankrupt because of the wrong strategy.

    And they still talk to me about the benefits of a free market?!... All EU gas directives were aimed at liberalizing the gas market. The result is there. The market has come under the control of speculators. Oh, sorry, stockbrokers.