by Mish Shedlock, Mish Talk:
When you roll the dice on wars, unpleasant things usually happen.
Russia May Redirect LNG
Please note Russia weighs redirecting LNG exports from Europe to Asia-Pacific
Russia’s Deputy Prime Minister Alexander Novak said on Friday that he had discussed with domestic energy companies the possibility of redirecting Russian supplies of liquefied natural gas (LNG) from Europe to other markets, Interfax news agency and Izvestia newspaper reported.
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Earlier this week Russian President Vladimir Putin said that Russia could halt gas supplies to Europe right now amid a spike in energy prices triggered by the Iran crisis, pre-empting EU plans to stop Russian LNG imports by end-2026 and pipeline gas by September 30, 2027
Novak said that Russian companies were considering opportunities to divert shipments to Asia-Pacific markets. Negotiations are already under way, he said, and in the near future supplies will be redirected from the European market to what he described as friendly countries.
“Our companies are considering opportunities, without waiting for further restrictions from Europe, to conclude new long-term contracts with our partners and redirect some of the gas from Europe to other countries, including India, Thailand, the Philippines and the People’s Republic of China”, Novak said.
Do It. Why Wait?
Europe threatens to wean itself off Russian natural gas, so why wait?
It’s Europe that wants other sources. So, as a business decision, let Europe find them.
Things like this happens when you roll the dice on war.
World’s LNG System Strains as Qatar Halt Leaves Little Backup Supply
gCaptain reports World’s LNG System Strains as Qatar Halt Leaves Little Backup Supply
Companies in the United States and Australia, two of the top global liquefied natural gas producers, have little spare capacity to offset lost supply after Qatar halted production and declared force majeure on shipments due to the conflict in the Middle East, according to Reuters calculations and industry analysts.
Qatar supplies around 20% of the world’s LNG but stopped production this week because it is unable to send tankers full of the super-chilled gas through the Strait of Hormuz. Iran has said it would fire on any vessel that attempts to sail through the strait.
The U.S. is the world’s largest LNG producer, but its plants are running near full tilt and most cargoes are locked into long-term contracts. New U.S. production that could come online soon is unlikely to exceed 2 billion cubic feet per day, far short of the 10 bcfd gap left by Qatar – equal to about 80 million tons per year, according to Reuters calculations.
