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The Delivery Of American Gas To Europe Collapsed

The Delivery Of American Gas To Europe Collapsed

As of the end of last week (from September 7 to September 13), purchases of liquefied natural gas (LNG) to European countries for the first time in the current year 2020 were lower than in the previous year 2019, Kommersant writes, referring to information from European operators of LNG terminals.

Since January this year, Europe has received 64.2 billion cubic meters of LNG after regasification. The decrease was 3.9%.

European customers realized that due to the reduction in gas prices to $60 - $70 per thousand cubic meters, it is more profitable to pay fines to LNG-American plants than to buy gas ordered in advance.

In this regard, the load of almost all enterprises in the United States in August was less than 50%: at the end of the month, factories in the Gulf of Mexico stopped due to hurricane Laura. It's worth noting that one of the plants in Cameron is still experiencing problems due to power outages.

At the same time, experts predict that such a drop will not last long: in Asian markets, the cost of a batch of LNG already reaches $140 — $150 per thousand cubic meters after regasification. In Europe — $130.

In September, European buyers refused ten cargoes of American LNG, in July-from 50 cargoes. That indicates a rapid recovery in demand, the newspaper notes.

When supplies from the United States reach profitability, all American factories will operate at full capacity. According to forecasts of the US Department of energy, production will return to normal levels until November of this year.

The publication writes that if such forecasts come true, the Russian exporter Gazprom will face problems in the fourth quarter of 2020, due to which the company planned to improve its annual performance.

The situation for the Russian supplier is further complicated by the fact that European storage facilities are filled by a record 92%: the remaining needs of European countries may well be covered by American LNG.

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