As winter approaches, the global war for LNG has begun

Since the starting of the battle in Ukraine, on February 24, they’ve grow to be extra seen close to the European coast. En path to Asia, these LNG carriers, manufacturing unit ships with massive refrigerated tanks used to move fuel over lengthy distances, at the moment are usually “re-routed” to an older continent thirsty for fuel from Asia, after Moscow stops deliveries. Since the begin of the war, the European Union (EU) has elevated its imports of liquefied pure fuel (LNG) by practically 60%, significantly from the United States.

Read extra: The article is reserved for our subscribers LNG service, the star of South Korean shipyards

This nice surge in fuel flows underscores one truth: a global war for LNG has begun. “After the tragedy [nucléaire] From Fukushima [en 2011]LNG has already weathered the shock.” Thierry Brose, professor of Sciences Po, power knowledgeable. Europe then sends this liquefied fuel to Japan and makes use of Russian fuel as an alternative. He recalled. Today, a turning level in historical past: “If Europe is ready to fill its fuel reserves so rapidly, it’s because of LNG that it has diverted from Asia, and paid a excessive value for it, even when it means inflicting “blackouts” in different international locations, resembling India and Pakistan. »






and Tobago

United States


from the south









United States







Conventional fuel

Regional markets and land transport

Main fuel pipeline

Closed or restricted because of war or different diplomatic tensions in Ukraine

Liquefied Natural Gas (LNG)

An different is provider diversification

LNG terminal

Dilution (Export)

Liquefied Natural Gas (LNG)

An different is provider diversification

LNG terminal

Regasification (import)

Liquefied Natural Gas (LNG)

An different is provider diversification

Main sea route LNG

Liquefied Natural Gas (LNG)

An different is provider diversification

Billion cubic meters (m3) in 2021

Rise of the United States

Due to grease shale exploitation, the nation is a frontrunner in hydrocarbon manufacturing, forward of Saudi Arabia and Russia. In 2016, the first fuel liquefaction plant paved the means for exports, and terminals in the Gulf of Mexico multiplied.

China’s opportunistic recreation

China is the world’s largest importer of LNG. In the first half of 2022, Beijing bought 4 million tons of American or African LNG to European states. Several LNG carriers have returned to the EU. But, with the arrival of winter, Beijing can keep its mandate and improve competitors in the fuel market.

An opportunity for Europe* to get out of Russia’s lure

LNG imports are anticipated to develop by 60% in the first half of 2022, greater than Russian fuel. But Eastern Europe, closely depending on Russia, has little or no entry to the sea. Spain has six terminals, however not sufficient pipelines to move fuel to the remainder of the European Union (EU).

* European Union plus United Kingdom

Good deal for Algeria

The first African fuel exporter, Algeria provides Europe by fuel pipelines. But since the diplomatic disaster with Rabat in late 2021, Algiers has lower the pipeline by Morocco. Development of liquefied fuel would allow Algeria, the EU’s fourth LNG provider, to rely extra on its neighbour.

Qatar’s long-term technique

The world’s second-largest LNG exporter after Australia, the emirate provides primarily to Asian international locations, below long-term contracts to which European gamers have lengthy refused to commit.

Russia’s energy is blackmail

A serious supply of fuel for Europe, Russia has restricted its provides since Western sanctions linked to its invasion of Ukraine. This power blackmail is forcing Europeans to look for different companions and switch to LNG.

Africa’s new attraction

Africa’s fuel potential is of curiosity to Europeans, who come up towards insecurity (piracy in the Niger Delta, jihadist assaults in Mozambique and the Sahel) and competitors: fuel provides from new offshore fields in Senegal (2.5 million tons of LNG per 12 months ending in 2023) are largely preempted by Asian clients. -empted. Asia now accounts for 73% of global LNG demand.

Source: “BP Statistical Review of World Energy 2022”; International Gas Union (IGU), “World LNG Report”, 2022; Knowledge of energy

Infographics the world : Victoria Denis, Francesca Fattori, Benjamin Martinez, Delphine Papin and Florian Picard

Is this situation possible in the long run? As winter approaches, Asian international locations can even must replenish their shares, which is not going to fail to extend worldwide competitors. South Korea, the place shares are required by regulation to be 90% full by the finish of October, might want to import extra. For its half, Japan, very forward-looking, has already met them above the common of the final 5 years. But what about China?

More CO2

“It’s the nice unknown, Vincent Demory, General Delegate of the International Group of LNG Importers emphasised, Everything will depend upon the climate, whether or not the winter is delicate or not and the affect of the Covid-19 pandemic on industrial exercise. » But so is the revival of its coal-fired energy vegetation. “It is just not excluded, if costs are in its favor, that Beijing decides to proceed working its coal-fired energy vegetation whereas supplying fuel from Central Asia and Russia, because it has carried out in current months”, This knowledgeable continues.

Read extra: The article is reserved for our subscribers The United States, a brittle colossus of liquefied fuel

Because, if the US exports extra of its fuel, primarily from shale, the actual winner of the disaster will undoubtedly be China, which resells a part of its LNG cargoes to Europe, which buys it in long-term contracts, at stratospheric costs. Comfortable, this supply of provide that makes it attainable to cross Russian borders – and pipes – is already giving Europeans wings. As evidenced by the infrastructure initiatives in the means of EU accession. And this, regardless of the threat of getting caught up in an costly local weather technique.

You have 49.07% of this text left to learn. The following is for clients solely.

Leave a Reply

Your email address will not be published.