41595
US Incapable of Replacing Russia in Europe Gas Market
Energy

US Incapable of Replacing Russia in Europe Gas Market

The US has started gas supplies to the European market, which analysts believe cannot pose a threat to traditional suppliers like Russia and Norway. The first tanker with American LNG arrived in Europe in late April. According to an article in Die Welt, "The shipment of LNG from the US to Portugal could accelerate the drop of gas prices in Europe," Sputnik reported.

However, the current situation is that Russia’s Gazprom continues to supply large amounts of gas to Europe, the report said. In the first quarter of 2016, the Russian company increased its supplies to Europe by 28%. But the question is still open regarding how much gas the US will be able to supply to Europe.

"Even if the US focuses all its export capacities on Europe, without supplies to other regions, exports in Europe will reach only 24 billion cubic meters. It would only cover 5% of Europe’s annual consumption that has reached 426 billion cubic meters," it said.

Analysts are not sure whether the US will increase deliveries to Europe, but maintain that LNG exports to Asia would be more profitable for US companies.

In an interview with Bloomberg, Statoil senior vice president for marketing and trading, Tor Martin Anfinnsen, said LNG shipment by the US will not squeeze pipeline-transported gas from the European market.

The price of US-produced gas is expected to rise in 2016, which will increase export costs to Europe.

According to RBC Capital Markets, the price of gas at Henry Hub (the largest gas distribution point in the US) would rise by 32% in 2017.

"All European gas pipelines can compete with US deliveries. Even if there are long-term gas contracts between the US and European countries, they would pose no threat to traditional pipeline suppliers," Anfinnsen said.

"Pipelines will be the main gas supply routes to Europe," he added.

Short URL : http://goo.gl/Octeiw
  1. http://goo.gl/myuNe5
  • http://goo.gl/GhLPFL
  • http://goo.gl/PFIF9p
  • http://goo.gl/zgdl9c
  • http://goo.gl/vdqa8n

You can also read ...

India Co. Says ‘Important’ to  Buy Some Iranian Oil
Mangalore Refinery and Petrochemicals, a subsidiary of India’s...
NIOC Chief: US Talk to Zero Iran Oil Export Is Hot Air
Rhetoric from the United States that it wants to reduce Iran’s...
Iran's Marjan Petrochem Company Exports 1st Methanol Cargo
The first 20,000 ton methanol consignment produced by Marjan...
Crude Prices Rise
Oil prices rose for a fourth day on Wednesday after industry...
NOPEC Threat Prompts Change at OPEC
OPEC has urged its members not to mention oil prices when...
Russian Expert: Collaboration With Oil Majors Could  Help Iran Enhance Energy Output
Iran has proved that it has great potential for investment...
Foreign Firms to Invest in Mazandaran DGs Power Projects
Foreign companies have signed contracts to invest in small...

Trending

Googleplus