Europe’s vastly unused LNG capacity could buffer the effect of any decision by Russia to curb its gas supplies to the continent, an article from The Telegraph suggests.
As political tensions between the West and Russia continue to escalate, fears that Russia could check gas supplies to Europe as the result of US and EU sanctions are mounting.
However, any decision by Russia to restrict gas supplies would have a profound effect on the Russian economy, and analysts say that a move like this is unlikely.
Gas Infrastructure Europe has published figures that suggest that LNG terminals across the continent are operating at a mere 20% of capacity, leaving approximately 160 billion m3 of available space.
At a time when global LNG supplies abound after supply outstripped demand in Asia following a mild winter, there is an increasing amount of LNG available for export – the UK is expecting 8 cargoes from Qatar in July alone. What is more, the price of LNG has hit a three-year low in Asia at US$ 11/Btu, and in the UK the cost of LNG at US$ 6.50/Btu represents a significantly cheaper deal than piped gas from Russia.
Edited from various sources by Ted Monroe