LNG exports diverted from Asia to Europe amid Russian-Ukrainian conflict

0

Lake Charles, LA (KPLC) – While LNG export facilities have come online, most would have long-term contracts with Asia.

Today, as European countries try to reduce their dependence on Russia, most LNG is destined for Europe, according to industry leader Jason French.

74% of shipments ended up in Europe this year, while last year the majority of these shipments were in Asia.

This is not a creation of new natural gas, but rather a movement of gas from Asia to Europe.

French said LNG buyers can divert it to Europe sometimes by paying a penalty, or selling it on the spot market.

He said more LNG was needed.

“To really meet long-term demands, we’re going to have to build new facilities here in the United States,” French said. “President Biden even visited Europe and pledged to provide an additional fifteen billion cubic meters of natural gas from the United States. We need to find a balance as a country between our environmental goals and our energy and diplomatic goals.

As it stands, he said the US cannot meet Europe’s LNG needs.

He said natural gas is 50% cleaner than coal and that US LNG can help move coal-fired plants overseas, helping to reduce global warming.

“Warming is happening, but it is a global phenomenon. We can take over and shut down a coal plant in China. It has as much impact on the Louisiana coast as closing one in Missouri,” French said.

French also showed renderings of the LNG Center of Excellence that will be located at McNeese State University, saying it will be for training, research and collaboration on LNG issues.

Copyright 2022 KPLC. All rights reserved.

Share.

About Author

Comments are closed.