After Russia reduced its gas supplies, the demand for liquefied natural gas is increasing. According to a recent study, the US is likely to be the main supplier of LNG (liquefied natural gas, nut) to Germany and other European countries. Norway also has a role to play.
This is the conclusion of a study by the Energy Economics Institute of the University of Cologne (EWI), commissioned by the German trade association Zukunft Gas. She examined different scenarios of future gas trade between the European Union (EU) and Russia and the impact on global trade relations. “Clear result: European demand for LNG is increasing significantly,” said representatives of the industry association.
More pipeline gas only possible to a limited extent
Additional pipeline gas can only be purchased to a limited extent from Norway, Azerbaijan and Algeria. The gap in the Russian gas supply must therefore be filled with the help of LNG imports. “LNG supplies from the US could play the biggest role in the European market,” it said. In all scenarios examined, US imports will increase significantly compared to 2021. If gas is no longer traded between Russia and the EU, the study assumes that the US will account for 39 percent of total imports by 2030 .
In this scenario, Norway has a delivery share of 28 percent. The investigation did not examine how the production of so-called fracking gas in Germany, which has not yet started, would affect the gas markets. The study authors do not expect a noticeable increase in LNG from Qatar, Australia or Canada.
prices rise
They also noted that electrification, greater efficiency and the production of biomethane as a replacement for natural gas could avoid shortages in global markets. Liquefied natural gas will not lead to price easing. “We estimate the additional costs at a minimum of 50 billion euros. Of course this drives up gas prices,” said Christian Zinglersen, head of EU energy regulator ACER.
Zukunft-Gas board member Timm Kehler expects things to ease from 2024. “The rapid expansion of LNG terminals in Europe will remove import bottlenecks and align European and Asian prices.” more than 90 euros per megawatt hour.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
