New LNG supplies from US to Europe will take two more years

November 27, 2022/in /by Rudolf Huber

It will take at least two more years if Europeans can get their act together and sign up for long-term LNG. They don’t really do that right now as Natural Gas is still being seen as bad and no politician wants to be seen putting his signature under a 20-year agreement. What Europeans do is sign short-term agreements or play the spot market and those are not tools that allow any developer to finance a new project. You need long-term revenue security to do that. So the market will remain short and extremely volatile. And Europeans will pay through the nose until they find out that coal is nice.

While the United States filled some of the supply gap by exporting huge quantities of liquefied natural gas from its seven plants, global markets are going to have to wait at least two more years…

worldoil.com

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