Sep 14, 2020
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The supply of liquefied gas from the USA to Europe collapsed

As of the end of last week, the European Union bought less liquefied natural gas (LNG) for the first time in 2020 than last year. Such data are provided by European terminals.

Since the beginning of the year, Europe has received 64.2 billion cubic meters of LNG. The 3.9% decline occurred after regasification, and the main reason for this decline was collapsed supplies from US factories, writes Kommersant.

After gas prices fell to $ 60-70 per thousand cubic meters, customers of American plants realized that it was more profitable for them to pay fines to LNG plants than to buy out the fuel they had ordered earlier. Because of this, the utilization rate of all US enterprises in August was less than 50%. Hurricane Laura, which raged in the Gulf of Mexico in late August, also added to the problem. All factories located there had to be shut down, and the Cameron plant is still experiencing problems due to power outages.

At the same time, experts predict that the recession will not last long, and pay attention to the fact that in Asia the cost of a batch of LNG already reaches $ 140-150 per thousand cubic meters after regasification. In Europe, the price has already reached $ 130. The imminent recovery in demand is also evidenced by the fact that in September European customers refused 10 shipments from the United States, and in July - from 50.

US factories are set to start operating at full capacity once US supplies become profitable. The country's Energy Ministry predicts that production will recover to normal levels by November.

However, as the newspaper notes, this will be disadvantageous for the Russian "Gazprom", which wanted to improve the annual performance due to the current situation. At the same time, the situation is complicated by the fact that underground European storage facilities are almost 93% full, so that LNG can cover the needs of the region.

Prior to that, the German Minister of Energy, Infrastructure and Digitalization of the federal state of Mecklenburg-Vorpommern Christian Pegel spoke about the situation with LNG from the United States. He explained that it is unprofitable for Europe to buy liquefied natural gas from the United States because of the high cost. The Americans use special methods to extract LNG, which are in themselves more expensive than gas.

As wrote, earlier a Russian specialist explained why Ukraine does not need liquefied natural gas (LNG) from the United States. According to the deputy director of the Institute of National Energy Alexander Frolov, such purchases are unprofitable for Kiev.

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