The US will increase supplies of liquefied natural gas to the EU. According to the Financial Times, the United States has a plan to supply up to 15 billion cubic meters of LNG by the end of 2022 to help the EU reduce its dependence on Russia.
EU countries import 90% of the natural gas used to generate electricity, heat homes and supply industry, with Russia supplying nearly 40% of gas to the EU and a quarter of its oil. Brussels is now looking for ways to reduce its dependence on Russian gas by diversifying suppliers.
In Germany, meanwhile, the natural gas supply situation is about to deteriorate and, according to Bloomberg reports, a major German energy group has urged the Berlin government to issue the first level of alert in its emergency plan. Bdew, which represents Germany’s main gas and electricity suppliers, said it could not rule out supply disruptions as a result of Vladimir Putin’s request for payment in rubles.
According to Goldman Sachs, rather than an increase in US production, Washington would consider diverting enough liquefied natural gas to Europe to help Europe replenish its stocks at safe levels before next winter. The unknown factor, however, is that the flow of gas from Russia may be interrupted, after the worsening of the crisis, also following Vladimir Putin’s request to be paid in rubles. The US bank, however, notes that US supplies are unlikely to be able to restrain gas price growth until there is significant growth in global supply chains. Scenario foreseen for 2025.
Meanwhile, Russia’s energy isolation also intensifies on the Asian front. A Japanese regional utility issued a tender for the purchase of a shipment of liquefied natural gas with a clause requiring the cargo not to come from Russia, in what could be the first LNG tender to specifically ban ” pariah state, ”writes Bloomberg. Tohoku Electric Power Co. is looking for a spot LNG cargo for April to May delivery with ports of cargo excluding Russia. The company needs more LNG as an earthquake last week took a coal-fired power plant out of service, increasing its reliance on gas production.
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