After Russia invaded Ukraine, Europe quickly moved from what the industry called “the market of last resort” to “the market of most need,” said Anatol Feygin, executive vice president and chief commercial officer of Cheniere Energy, a major US LNG company. -supplier.
According to Kayrros, shipments to Europe from the United States have more than doubled this year. Freights from Qatar have increased by about 20 percent. Russia, which continues to ship LNG to Europe despite restricting pipeline gas, has increased its exports by about 10 percent. Although shipments to Asia are down about 9 percent this year, it remains the leading destination for the fuel.
Mr Feygin said about 70 percent of cargoes loaded at Cheniere this year had gone to Europe, including the roughly 10 percent the company reserves for its own energy trade. For example, in August he sent a cargo of gas aboard the Gaslog Georgetown from Cheniere’s terminal in Sabine Pass, western Louisiana, to a newly opened terminal in Eemshaven in the north of the Netherlands, which the Dutch authorities had hurriedly set up. after the advance of Russia in Ukraine. .
Mr. Feygin sold the cargo to CEZ, a large Czech energy company, which bought LNG for the first time
In a statement, CEZ said the cargo from Cheniere and other expected shipments were “an important step for the energy security of the Czech Republic”. Russia has reduced gas supplies to CEZ to a “minimum level,” said Roman Gazdik, a spokesman for CEZ.
That security probably comes at a high price. Cheniere and CEZ declined to comment on financial terms, but the cargo was likely sold at bargain or current price, analysts say. Clementine Laure, an analyst at Kayrros, estimated the cargo to be currently worth $105 million.
With total supply growth of only about 5 percent this year, Europe’s expansive appetite for LNG is likely to drive up prices around the world and make it unaffordable for many poorer countries.
