US Confident It Can Compete In Europe’s Gas Market
I think the current calculus for Russian gas is fundamentally flawed. All Russian gas is comingled in one giant gas system that makes it impossible to properly relate reserves and destination. How does one calculate costs on this with confidence? The new fields in Yamal must be fundamentally more expensive that the old legacy fields. Those are still producing – but they wont do so for long anymore. This will shift cost. Russia is a black box. Any number coming from there should be taken with a huge pinch of salt.
As American LNG costs continue to fall, and as Europe looks to untangle itself from Gazprom, U.S. liquefied natural gas (LNG) exports are quickly becoming a welcome alternative to Russian gas supplies. The United States is all too happy to help Europe increase its energy security by diversifying its natural gas supplies—in which Gazprom holds more than a third of the market.
