Natural Gas News – March 15, 2022
Why LNG Won’t Fully Replace Russian Gas In Europe
Europe became the largest customer of U.S. producers of liquefied natural gas recently, taking in more than 50 percent of total U.S.
shipments over the last three months. But U.S. LNG, as well as LNG from other sources, would only provide short-term relief. For starters, there are the long-term contracts that all LNG producers in the U.S., Australia, and Qatar already have with other buyers. Then there is the question of insufficient LNG import capacity in Europe. Germany has announced a decision to urgently build two LNG terminals—the country has none currently—but chances are they will not be ready in a month or two. For context, building an LNG export terminal takes three to four years. Import terminals don’t need liquefaction trains, but they do need regasification facilities. Finally, competition from Asia… For more info go to https://bit.ly/3KKsTLl
Natural-Gas Prices Have Spiked
Natural-gas prices in Europe have spiked to record highs this winter, forcing heating bills higher and causing some power plants and fertilizer companies that rely on gas to shut down or reduce activity. In the U.S., natural-gas prices are up too, adding to costs for consumers and businesses, but not nearly as much as elsewhere. That’s because the U.S. has an enormous supply of natural gas, and a limited capacity to export it. U.S. consumers get the benefit of plentiful domestic supply without having to compete with as many consumers elsewhere for that gas. Natural gas is used for several things in the U.S., with 38% going toward electricity production, 33% going to industrial uses such as refining and fertilizer plants, and 15% for residential uses such as heating. For more info go to https://bit.ly/3JelKCB