European States Line Up for Turkish Stream Gas, Casting Shadow on US LNG Future
The world still, seems to believe that gas squeezed though pipes is free. It is not. Look at the map and at the distances involved and also on the topographical challenges on the way. This is not a cheap pipe to lay and once the old Russian fields have run low the upstream portion won’t be that cheap as well anymore. Is Russian gas dead – by no means. It’s a potent competitor – but so is US LNG.
A number of European countries have recently signaled willingness to receive Russian natural gas through the Turkish Stream pipeline. Italy, Bulgaria, Serbia, and Hungary are seeking to boost purchases of Russian hydrocarbons. In light of this trend the future of the expected US LNG boom seems bleak.
