Europe is running out of space for LNG

Must read

Is The U.S. Already In a Recession? Many Analysts Think So

By Bethany Blankley (The Center Square) Then White House Press Secretary Jen Psaki said in October...

DHS Investigating Threats To ‘Burn Down’ Supreme Court, Murder Justices If Roe v. Wade Overturned

A memo from the Department of Homeland Security (DHS) purportedly shows the government is preparing for a wave...

JP Morgan Warns Gas Prices About To Get Much, Much Worse

As Americans struggle to stay afloat economically, President Joe Biden continues to blame soaring gas prices on Vladimir...

After the massive influx of US liquefied natural gas to make up for lower pipeline supplies from Russia amid high demand, Europe is running out of processing capacity for the gas, Reuters has reported.

Europe turned into the biggest market for US liquefied natural gas over the past three months as concern about the geopolitical tensions around Ukraine prompted the EU to seek alternatives for Russian gas in case Moscow turned the taps off, even though Moscow has repeatedly said that it has no such plans.

Because of the increase in LNG shipments to Europe, the United States also overtook Qatar to become the world’s largest exporter of the commodity earlier this year. In January, Europe took in over 16 billion cubic meters of American liquefied natural gas, and this month’s shipments are also expected to remain elevated, with more than 6 billion cubic meters shipped since the start of February.

Right now, an estimated two-thirds of US LNG cargoes are slated to be delivered to European destinations. Storage, however, is filling up, which means that soon, LNG shipments from the United States might start to decline.

“A few cargoes could be squeezed into some other countries, but not significant supply,” Rystad Energy senior analyst Kaushal Ramesh told Reuters. This would require additional logistics, which, Ramesh said, would “burn a hole through buyers’ pockets, again.”

The European Union has a limited capacity of LNG import terminals where the superchilled gas is regasified before it is sent along pipelines to its final destinations. Spain and France have the biggest import capacity in the EU, with the UK coming in second in Europe as a whole with 50 billion cubic meters in annual nameplate LNG import capacity. Germany, on the other hand, the biggest gas market in Europe, has zero LNG import terminals.

For more stories on economy & finance visit RT’s business section

More articles

Latest article

Is The U.S. Already In a Recession? Many Analysts Think So

By Bethany Blankley (The Center Square) Then White House Press Secretary Jen Psaki said in October...

DHS Investigating Threats To ‘Burn Down’ Supreme Court, Murder Justices If Roe v. Wade Overturned

A memo from the Department of Homeland Security (DHS) purportedly shows the government is preparing for a wave...

JP Morgan Warns Gas Prices About To Get Much, Much Worse

As Americans struggle to stay afloat economically, President Joe Biden continues to blame soaring gas prices on Vladimir...

WATCH: Sen. Hawley Slams Energy Secretary Granholm’s ‘Utter Nonsense’ Blaming Putin For Gas Prices

Senator Josh Hawley took Energy Secretary Jennifer Granholm to task for spreading “utter nonsense” as she tried to...