US promoting business in Russia’s backyard
Published by Joseph Green,
Editor
LNG Industry,
Reuters are reporting that President Donald Trump will use fast-growing supplies of US natural gas as a political tool when he meets in Warsaw on 6 June with leaders of a dozen countries that are reliant on Russia for their energy needs.
Trump will tell the group that Washington wants to help allies by making it as easy as possible for US companies to ship more LNG to central and eastern Europe.
Among the aims of the summit is to expand regional energy infrastructure, including LNG import terminals and gas pipelines. Members of the initiative include Poland, Austria, Hungary and Russia's neighbors Latvia and Estonia.
The US is expected to become the world's third-largest exporter of LNG in 2020, just four years after starting up its first export terminal. US exporters have sold most of that gas in long-term contracts, but there are still some volumes on offer, and more export projects on the drawing board.
A global glut in supply may, however, limit US LNG export growth.
The glut has depressed prices and made it difficult for LNG exporters to turn a profit.
Russia has the advantage in Europe due to its proximity and pipeline connections.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04072017/us-promoting-business-in-russias-backyard/
You might also like
IEEFA: Tidal wave of new LNG supply to flood market amid demand uncertainty
Sluggish demand growth for LNG, combined with a record increase in global export capacity through 2028, will likely thrust markets into an extended period of oversupply, according to the latest Global LNG Outlook from the Institute for Energy Economics and Financial Analysis.