Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Brimming European LNG terminals lack room for more gas

Published Feb 17, 2022 09:19AM ET Updated Feb 18, 2022 05:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Storage tanks are seen at the Dragon Liquefied Natural Gas (LNG) facility at Waterston, Milford Haven, Pembrokeshire, Wales, Britain, September 20, 2021. REUTERS/Rebecca Naden
 
NG
+4.28%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Marwa Rashad and Isla Binnie

LONDON/MADRID (Reuters) - Europe's liquefied natural gas (LNG) terminals have limited available capacity to absorb extra supply from the United States or other major producers in the event gas from Russia is disrupted if it invades Ukraine.

Concerns have mounted that Russia, which provides around a third of Europe's gas, is preparing to invade Ukraine. Russia has repeatedly denied it plans an invasion.

The U.S. administration in January asked major energy producers such as Qatar whether they can send extra LNG to Europe.

At least half of U.S. LNG shipped this month has gone to Europe, Refinitiv data shows, with Europe poised to remain the top destination for U.S. shipments for the third month in a row.

(Graphic: European monthly LNG imports, https://graphics.reuters.com/UKRAINE-CRISIS/LNG-PORTS/znpnejreavl/chart.png)

LNG imports to the continent remain robust. After hitting a record high in January of more than 16 billion cubic metres (bcm), they have so far reached 6.9 bcm in February.

This means most of Europe's LNG terminals are operating at full capacity, especially in north-west Europe, where they feed large economies Britain, France and Germany, raising the question of how much more LNG can be processed.

(Graphic: European LNG import capacity map, https://graphics.reuters.com/UKRAINE-CRISIS/LNG-PORTS/klpykmwenpg/chart.png)

"A few cargoes could be squeezed into some other countries, but not significant supply," said Rystad Energy senior analyst Kaushal Ramesh, adding that logistical issues are likely to "burn a hole through buyers' pockets, again".

LNG needs to be regasified by transforming it from its frozen state back to gas and then transporting it through pipes - either directly for burning or to generation plants to make electricity.

(Graphic: LNG imports and nameplate capacity in Europe, https://graphics.reuters.com/UKRAINE-CRISIS/LNG-PORTS/dwvkrjwdkpm/chart.png)

Spain has the continent's biggest capacity, with six terminals, while Germany has none. The utilisation rate for the Spanish terminals was just 45% in January, data and analytics firm Kpler said.

(Graphic: EU LNG terminals utilisation rates in Jan. (%), https://graphics.reuters.com/UKRAINE-CRISIS/LNG/byprjxgjape/chart.png)

"The problem with Spain is that it has limited pipeline connections with the rest of Europe with only one pipeline that could take gas from Spain to France and so capacity is restricted somewhat," Laura Page, senior LNG analyst at Kpler said.

A European industry source, speaking on condition of anonymity said Iberian infrastructure could play a role if there were insufficient of gas for heating or for industry, but it would not be enough to address the shorfall.

Another option would be to park LNG vessels in Iberia.

"In (the Portuguese port of) Sines, maybe we can try to have a few more methane vessels than today, but not many more because it's almost fully operational," the source said.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

European monthly LNG imports https://tmsnrt.rs/36jjX0G

European LNG import capacity map https://tmsnrt.rs/3GRLAuf

LNG imports and nameplate capacity in Europe https://tmsnrt.rs/3sMCQ3r

EU LNG terminals utilisation rates in Jan. (%) https://tmsnrt.rs/3GRY05f

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Brimming European LNG terminals lack room for more gas
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Kochar Bipin
Kochar Bipin Feb 18, 2022 5:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Europe should boost utilisation of their nuclear power plants to keep power costs reasonable for consumers
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email