Home » Europe and the United States to deepen liquefied natural gas cooperation energy version of “Marshall Plan” is about to come out jqknews

Europe and the United States to deepen liquefied natural gas cooperation energy version of “Marshall Plan” is about to come out jqknews

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Europe and the United States to deepen liquefied natural gas cooperation energy version of “Marshall Plan” is about to come out jqknews




Europe and the United States to deepen liquefied natural gas cooperation energy version “Marshall Plan” is about to come out

Author: Kang Kai

  [ 欧美双方达成合作协议,这一协议将帮助欧盟今年从美国额外获得至少150亿立方米液化天然气(LNG),预计未来还会增加。 ]

Energy security has become the focus of European attention since the situation in Ukraine fermented. In order to find new sources of air, the leaders of the EU and its member states have been shuttled through multiple diplomatic stages recently.

The EU’s attempt to diversify its energy supply made another breakthrough during US President Joe Biden’s visit to Europe. The EU and the US have reached a cooperation agreement that will help the EU receive at least an additional 15 billion cubic meters of liquefied natural gas (LNG) from the US this year, with more expected in the future.

European Commission President von der Leyen said that the EU and the United States reached the above plan, which is a big step for the EU to end its dependence on Russia for energy.

Du Bingqin, an energy and chemical analyst at Everbright Futures, said in an interview with a reporter from China Business News that since the situation in Ukraine has fermented, the United States has sent a signal to the European Union that it will guarantee the latter’s energy supply. To this end, the United States also tried to cooperate with Qatar. However, subject to LNG production capacity and transportation issues, it remains to be seen whether the EU can diversify its energy supply in the future.

EU countries look for gas sources everywhere

The European Commission said earlier this month that it intends toGazpromdemand was cut by two-thirds. Since then, EU countries have been scrambling to find new gas supplies. Germany’s economy ministry said last week that the country had reached a long-term gas supply deal with Qatar. Germany has also reached an agreement with Norway for the two countries to jointly build a hydrogen pipeline.

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According to Bloomberg Intelligence, a market research firm, global LNG production may reach 452.8 million tons in 2022, driven by countries such as the United States, Qatar and Australia. In theory, the 118 million tons of LNG the EU imports from Russia is expected to find a substitute.

However, in Du Bingqin’s view, since the international energy market tends to sign long-term contracts, if the EU wants to obtain additional orders, it must buy from the spot market. Subject to supply quantity and price issues, this will bring variables to the EU’s attempt to find gas sources.

According to data from Bloomberg Intelligence, according to the current weekly LNG transportation volume, 70% of LNG orders are reserved for long-term customers, and only 30% of the orders are sold in the LNG spot market.Intercontinental ExchangeAs of now, the TTF benchmark Dutch gas price, known as the “wind vane” of European gas prices, was at 101.269 euros/MWh in March, nearly 5.4 times the price a year ago, according to ICE data.

Anatol Feygin, chief commercial officer of Cheniere Energy, the largest U.S. LNG exporter, said it was almost impossible for international gas market players to deliver more LNG to Europe at the moment. “Everyone is asking what you can do in the short term to get more commodities into Europe, but there is no magic bullet for additional LNG trains to come along,” he said.

Du Bingqin also said that in addition to supply problems, the EU countries’ ability to receive LNG will also restrict the region’s attempts to diversify energy supply, which is closely related to the number of LNG carriers and LNG terminals.

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According to BloombergNEF estimates, the world needs to add 82 more LNG tankers every month to make up for the shortfall in Russian gas supplies.

On the receiving side, European countries need to reroute pipelines and build interconnection networks to move gas from coastal import terminals to demand centers located within the EU, such as Germany. As the largest natural gas consumer in Europe, Germany currently has no natural gas import terminal. This means that before LNG terminals and ports are built, Germany can only receive LNG through terminals in Belgium, France and the Netherlands, convert it into gas, and then transport it to the country through pipelines.

Du Bingqin further stated that although Germany and other countries have indicated that they will increase their LNG receiving capacity, the construction of LNG facilities will take three to five years even after obtaining financing and approval of contracts. This shows that the additional supply of natural gas available to the EU in the short term is still limited.

The “Marshall Plan” in the energy sector?

In the context of the current energy shortages and high energy prices in Europe, as the largest domestic lender of fossil energy in the United States——JPMorganCEO Jamie Dimon suggested to U.S. President Joe Biden that the U.S. needs to develop a new version of the “Marshall Plan” to develop more natural gas at home.

Its proposal is mainly divided into three points: first, the United States should increase the production of natural gas; second, the United States should encourage Europe to increase the construction of LNG infrastructure, and adjust and transform the original pipeline natural gas facilities; third, the United States needs to further Increase investment in the energy sector, including new energy and carbon capture technologies.

Mike Sabel, chief executive of U.S. gas supplier Venture Global LNG, said the U.S. government’s commitment to supply more gas to Europe sent a strong signal to the market. “Thanks to the new support from the government and regulatory authorities, the company will bring a large amount of LNG products to the market as soon as possible,” he said.

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According to Nikos Tsafos, an analyst at the Center for Strategic and International Studies (CSIS), the United States is expected to continue to increase natural gas exports to Europe in the future to help the latter get rid of its dependence on Russia for energy, but here Some hurdles need to be cleared before.

U.S. companies need to consider whether newly invested LNG projects can seize the window of Europe’s energy transition, Sarvers said. Currently, the EU defines natural gas as a transitional energy source, which means that European customers may need gas between 2025 and 2030, but not after 2040 or 2045. The investment period for building an LNG project is 20 years, the fixed sales contract period is 15-20 years, and the financing period is about 10-15 years.

In addition, Charif Souki, chairman of U.S. natural gas company Telluria, said: “In the context of the global energy transition, banks and financial institutions are becoming a little more sensitive to investment in traditional energy, and we have been telling them not to invest in oil. and natural gas.”

The U.S. government said that the U.S. will also focus on long-term breakthroughs in hydrogen energy in its plan to deliver natural gas to Europe. In the future, new LNG infrastructure built by the EU may also receive more climate-friendly hydrogen.

Massive information, accurate interpretation, all in Sina Finance APP

Responsible editor: Wang Maohua

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