According to Cheniere Energy, rising worldwide gas consumption could exacerbate Europe’s energy crisis.
The largest US LNG exporter, Cheniere Energy, has issued a warning that this winter’s gas supplies may be “very, really tight” due to global supply shortages.
Reuters quotes Cheniere as saying that a rise in Chinese LNG demand will make the energy crisis worse. Cheniere has transported 70% of its supply to Europe this year.
“How cold it is and how government rules and industry rationing function will ultimately determine how tight the market will be,” said Corey Grindal, executive vice president for global trading at Cheniere, at a Gastech conference on Thursday.
Grindal pointed out that for the time being, the price situation suggests that LNG supplies will still go to Europe. Prices were $2 for one million British thermal units.
Taking advantage of the higher costs in the area, the US has increased its exports of fuel to the EU this year.
According to Bloomberg, China has also been sending excess LNG to the EU because its zero-Covid measures are still having an impact on local consumption. Analysts caution, however, that a complete Russian gas cutoff would plunge the EU into a multi-winter energy catastrophe.
Due to maintenance concerns, the bloc’s access to natural gas from Russia’s Nord Stream pipeline will remain suspended indefinitely. The Kremlin claims that until Western sanctions on Russia are lifted, there will still be technical difficulties with gas delivery through the pipeline.
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