Europe Will Still Be Dependent On Russian Energy Exports Far Into The Future

Photo: A deal signed in May 2013 between Exxon Mobil Corp. and Qatar Petroleum International would add a liquefied natural gas export terminal to the existing Golden Pass import terminal in the Port Arthur community of Sabine Pass.

US Natural Gas Won’t Replace Russian Supply As Europe Seeks Options -- Fuel Fix

U.S. exports of liquefied natural gas won’t be able to replace Russian exports to Europe as the Ukrainian crisis threatens to disrupt flows to the region.

U.S. LNG supplies expected to start in the first quarter of 2016 won’t be enough to compensate for Russian supplies that meet about 30 percent of Europe’s gas needs, said Jean Abiteboul, president of Cheniere Supply & Marketing Inc. U.S. LNG exports won’t have any bearing in the current conflict and deliveries will likely target higher-price markets in Asia, said Will Pearson, director for global energy and natural resources at consultant Eurasia Group.

“You cannot replace Russian gas with any kind of LNG, especially by U.S. LNG only,” Abiteboul said yesterday in an interview at the Flame conference in Amsterdam. “It will probably force people to think more accurately on the diversification of supply, security of supply and not only price and could give an additional chance for LNG imports into Europe, including U.S.”

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My Comment: Expect (in Europe) even more money being thrown at "green projects" .... but the reality is that Green projects/U.S. supplies/etc. will have little if any impact on Europe diverting away from "cheap" Russian energy supplies.