Natural Gas in Europe: Liquid Natural Gas would not be enough to replace the Russian one in its entirety
If natural gas flows from Russia via Ukraine were to stop in an escalation of the Russia-Ukraine crisis, imports of liquid natural gas would be sufficient to replace flows to Europe via Ukraine, the IHS said Monday. Markit .
Gas flows from Russia to Europe via Ukraine were already at an all-time low in January and if residual transit through Ukraine were completely stopped, it would have a relatively limited additional impact on European supply, the analyst firm said. .
However, in an extreme scenario – and according to IHS Markit, highly unlikely – in which Russia would completely cut off gas supplies, not only through Ukraine, but also those directed through Nord Stream 1 and Yamal, the only imports of LNG they would not be able to make up the deficit and additional supply levers would be required.
"So far, this is more of a price crisis than a physical supply crisis," Shankari Srinivasan, global vice president of gas, IHS Markit, said in a statement.
"Although the gas supply is sufficient to meet most of the market needs until the end of the winter heating season, high prices are already leading to the closure of some industries and the layoffs of workers in Europe," added Srinivasan.
"In an extreme, albeit highly unlikely scenario, in which all flows of Russian pipelines were interrupted, the lack of global supply of LNG and the limited capacity for regasification of liquid gas would show the need to find alternative sources of supply", said Michael Stoppard, chief strategist, global gas, IHS Markit.
Such a scenario would lead to maximizing the production of energy from sources such as coal and nuclear, sending these alternative plants to the maximum. The problem is that countries like Italy are heavily dependent on gas for their electricity supply.
The United States and Europe are rushing to secure liquid gas supply to Europe in the event the Russia-Ukraine crisis escalates into conflict.
Last month, Australia's largest tanker gas exporter said it was ready to ship cargoes of LNG to Europe to "support its friends and allies," while Qatar signaled its willingness to hijack some cargoes if the The European Union restricts the resale of gas cargoes outside the EU.
However, all of this would not be enough.
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The article Natural Gas in Europe: Liquid Natural Gas would not be sufficient to replace the Russian one in its entirety comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gas-naturale-in-europa-il-gas-naturale-liquido-non-sarebbe-sufficiente-a-sostituire-quello-russo-in-toto/ on Tue, 08 Feb 2022 07:15:59 +0000.