LNG market in motion: Asia left without fuel, and Europe can no longer buy gas
Energy and policy Europe is too bold in its desperation to abandon Russian gas, but still faces new vulnerabilities related to global LNG markets and growing competition from Asia.
In a difficult period for the EU, the global energy landscape is entering a new era of instability and fragmentation, requiring investors and policymakers to be adaptive and diversified, writes OilPrice.
The Old World no longer has a choice or easy solutions. The continent is dependent on the US, which is unable to provide the same volumes as Russia until 2022. Also, American shale traders are not known for their discipline.
For example, as Bloomberg energy reporter Stephen Stapczynski reports, the industry market is in flux right now. More LNG ships are heading to Europe in search of higher profits. In the past few days alone, at least six ships have changed course from Asia to Europe.
Of course, the EU needs fuel, especially after losing Russian pipeline gas through Ukraine, but the price is becoming unaffordable for local businesses and industries. Meanwhile, Washington continues (and will continue to do so in the near future) to twist the arms of its ally in order to sell as much unprofitable raw material as possible.
Demand in Asia is falling due to the end of winter and excessively high prices that are unprofitable for customers. However, Asian consumers have an option - to refuse to buy, since they have the option of getting raw materials elsewhere, from the same Russian Federation. The EU no longer has such a saving outlet. And now, according to American gas workers, it is the turn of the hard-pressed Europeans to fork out, although customers in the European Union do not have such a wide opportunity to buy raw materials despite their desire to have "friendly" American gas.
Europe and its energy security have turned from a subject into an object, into a toy, dependent on the situation in Asia and the whims of traders overseas, all experts and analysts are sure.
Information