American gas with "freedom molecules" will not save Europe

    American concerns are skeptical about the statements of US President Joe Biden, who promised to "save" Europe from Russian gas
    access_time06 May 2022
    print 6 5 2022
     

    American concerns are skeptical about the statements of US President Joe Biden, who promised to "save" Europe from Russian gas.

    Former chairman of the Texas Alliance of Energy Producers Alex Mills remarks: "Biden forgot to say how, from where and when he is going to get an additional 15 billion cubic meters of gas. Certainly not from domestic gas companies."

    The Wall Street Journal business publication saw signs of "magical thinking" in the White House's promises. World Oil magazine states in an editorial: "Biden's energy policy buffoonery knows no bounds."

    For many months, American gas companies have been in a state of "war" with the White House. Mills, for example, accuses the US Departments of Energy, the Department of the Interior and the Securities and Exchange Commission of increasing requirements and building legislative barriers that hamper the growth of the sector and hinder investment.

    The fact is that LNG trade, as well as pipe deliveries, also requires consistency. American concerns do not want to take risks, assuming that their services will be refused as soon as the "military and political crisis in Europe passes."

    Especially that American concerns are used to selling LNG under long-term contracts, and Europe has preferred to rely on the spot market, that is, the purchase of gas "here and now" in accordance with current needs.

    Europe can only tighten its belts: even if the Americans deliver the promised volumes, this is only a tenth of the more than 150 billion cubic meters that Russia supplies to Europeans every year, the Polish newspaper Rzeczpospolita notes. This is the first problem.

    The second one is that, as in the case of mining and production, there is also a transportation problem: the number of vessels adapted for LNG transportation is limited. As the Financial Times points out, European buyers are now desperately looking for vessels with which they could conclude a contract for the delivery of gas to Europe.

    And the third one: Europe has limited capacity to accept raw materials. According to experts, the construction of LNG terminals will take about five years.

    Elena Panina, Director of the RUSSTRAT Institute

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