• Latest
  • Trending
  • All
  • Market Updates
  • Cryptocurrency
  • Blockchain
  • Investing
  • Commodities
  • Personal Finance
  • Technology
  • Business
  • Real Estate
  • Finance
Why Europe will struggle to buy more US gas

Why Europe will struggle to buy more US gas

January 20, 2025
Donald Trump threatens new tariffs on Canada

Donald Trump threatens new tariffs on Canada

July 11, 2025
Now we wait on the Trump EU tariff headline

Now we wait on the Trump EU tariff headline

July 11, 2025
GMX Exploiter Starts Returning $40M in Stolen Crypto After Bounty Deal

GMX Exploiter Starts Returning $40M in Stolen Crypto After Bounty Deal

July 11, 2025
How The New York Times is (still) getting gamed by the right

How The New York Times is (still) getting gamed by the right

July 11, 2025
This Inevitable Trend Soared a Quick 50%…This Morning

This Inevitable Trend Soared a Quick 50%…This Morning

July 11, 2025
More from ECB’s Schnabel: Another cut would require significant inflation deviation

More from ECB’s Schnabel: Another cut would require significant inflation deviation

July 11, 2025
DAL, KLG, PTC, AMD and more

DAL, KLG, PTC, AMD and more

July 11, 2025
Why copper tariffs are different

Why copper tariffs are different

July 11, 2025
FTAV Q&A: Steve Berkley

FTAV Q&A: Steve Berkley

July 11, 2025

Eurostoxx futures -0.3% in early European trading

July 11, 2025
Bitcoin Price Hits New ATH Above $113,700 Amid Trump Rate Cut Calls

Bitcoin Price Hits New ATH Above $113,700 Amid Trump Rate Cut Calls

July 11, 2025
Trump’s ‘big beautiful bill’ ends $7,500 EV tax credit

Trump’s ‘big beautiful bill’ ends $7,500 EV tax credit

July 11, 2025
Friday, July 11, 2025
No Result
View All Result
InvestorNewsToday.com
  • Home
  • Market
  • Business
  • Finance
  • Investing
  • Real Estate
  • Commodities
  • Crypto
  • Blockchain
  • Personal Finance
  • Tech
InvestorNewsToday.com
No Result
View All Result
Home Commodities

Why Europe will struggle to buy more US gas

by Investor News Today
January 20, 2025
in Commodities
0
Why Europe will struggle to buy more US gas
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Donald Trump has threatened the EU with a commerce struggle except it buys extra US oil and gasoline. However regardless of Brussels signalling openness to the concept, it has no energy to purchase — and European international locations are importing file volumes of cheaper liquefied pure gasoline from Russia.

The query of whether or not Europe can act as a bloc and purchase extra American gas looms giant over the transatlantic relationship after the US president-elect is inaugurated on Monday.

“Giant scale buy of our oil and gasoline. In any other case, it’s TARIFFS all the way in which!!!” Trump posted on social media final month.

Quickly after his re-election, European Fee president Ursula von der Leyen backed the concept: “Why not substitute [Russian gas] by American LNG?”

However the EU’s government physique just isn’t a gasoline purchaser and may do little greater than sign to the US president-elect that European firms are taken with American LNG, say officers and analysts.

The bloc pledged in 2022 to purchase extra LNG from the US. Officers say there aren’t any fast plans to replace that promise.

“What situations to make this occur do we have to provide you with? We’re not going to rethink every little thing on January 21,” one EU official stated.

Column chart of EU LNG imports by country of origin (mn tonnes) showing EU imports of LNG from the US have risen in recent years

The underlying situation is the bloc’s incapacity to wean itself off cheaper Russian fossil fuels. Final 12 months, EU firms imported record amounts of LNG from the nation.

“That LNG needs to be coming from the USA,” stated Mike Sommers, chief government of the American Petroleum Institute, the US’s largest oil and gasoline foyer group.

Fearing a provide squeeze after Moscow regularly turned off pipeline gasoline to Europe, the EU has stopped wanting banning LNG, the way in which it did with Russian coal — or setting a worth cap on Russian LNG shipped on tankers as was the case with Russian oil.

As an alternative the bloc set an indicative goal to utterly wean itself off all Russian fossil fuels by 2027 and allowed governments to ban the nation’s exporters from utilizing EU gasoline infrastructure. Some ministers have complained this isn’t sufficient for them to drive firms to interrupt present contracts.

Some content could not load. Check your internet connection or browser settings.

LNG may very well be included in a brand new spherical of sanctions, based on EU diplomats concerned in negotiations, however this could require unanimous approval from all 27 member states, with Hungary and Slovakia more likely to oppose.

US President Joe Biden’s administration this month added two smaller Russian LNG services to the US sanctions record however has balked at itemizing Yamal, a serious terminal supplying Europe and different elements of the world.

One “very logical” transfer can be for Trump’s administration to introduce harder sanctions on Yamal, given how the incoming president seeks to push for extra American LNG exports to Europe, stated Tatiana Mitrova, analyst on the Heart on World Power Coverage.

The US trade is assured it has greater than sufficient spare capability to supplant Russian LNG from the European vitality combine.

S&P World Commodity Insights stated a complete 10.3mn tonnes of LNG was already contracted for Europe from US crops below development. An extra 9.5mn tonnes are additionally out there for patrons together with in Europe. These volumes exceed the 17mn tonnes of Russian LNG the EU imported final 12 months, and “can be on-line on or effectively earlier than 2029”, S&P stated.

Trump has promised to lift a freeze on new LNG export capability imposed by the earlier administration as one in all his first actions in workplace.

The EU additionally has scope to import extra at regasification terminals, which convert the shipped liquefied gas again into gasoline.

Column chart of EU imports of Russian LNG by destination country (mn tonnes) showing France, Spain and Belgium import the most Russian LNG to the EU

Value sensitivity, nevertheless, is a giant situation. Concurrently placating Trump, the EU is struggling to guard its industries and reduce excessive vitality costs, notably in Germany, the most important European economic system.

EU gasoline costs are roughly greater than 3 times greater than within the US and have stubbornly remained greater than double what they had been earlier than Moscow’s full-scale invasion of Ukraine in 2022.

“The value situation is a fragile and decisive one,” stated one senior EU official.

Anatol Feygin, chief industrial officer of Houston-based LNG exporting firm Cheniere Power, instructed the Monetary Occasions that industrial selections and worth alerts would decide US LNG flows to Europe, somewhat than authorities decree.

“The US may be very totally different than Qatar and different elements of the world. There aren’t any direct government-to-government transactions,” he stated.

A method for Brussels or different EU governments to be concerned is to arrange a strategic LNG reserve that would embody US shipments, Feygin prompt.

EU demand for pure gasoline is predicted to drop by as much as 25 per cent by 2030 in contrast with 2023 ranges, based on Worldwide Power Company forecasts, whereas international locations together with Qatar and Canada are additionally set to carry extra manufacturing on-line.

“We’re firstly of a brand new LNG provide wave,” stated Michael Stoppard, international gasoline technique lead at S&P World Commodity Insights. “With every passing 12 months, it turns into simpler for Europe to line up alternate options to Russian LNG — particularly from 2026 onwards.”

Knowledge visualisation by Shotaro Tani and Ray Douglas



Source link

Tags: buyEuropegasstruggle
Share196Tweet123
Previous Post

compensation scheme or asset class?

Next Post

Investors in clean energy funds backtrack as rates and Donald Trump cloud outlook

Investor News Today

Investor News Today

Next Post
Investors in clean energy funds backtrack as rates and Donald Trump cloud outlook

Investors in clean energy funds backtrack as rates and Donald Trump cloud outlook

  • Trending
  • Comments
  • Latest
Equinor scales back renewables push 7 years after ditching ‘oil’ from its name

Equinor scales back renewables push 7 years after ditching ‘oil’ from its name

February 5, 2025
Niels Troost has a staggering story to tell about how he got sanctioned

Niels Troost has a staggering story to tell about how he got sanctioned

December 14, 2024
Best High-Yield Savings Accounts & Rates for January 2025

Best High-Yield Savings Accounts & Rates for January 2025

January 3, 2025
Suleiman Levels limited V 3.00 Update and Offer – Analytics & Forecasts – 5 January 2025

Suleiman Levels limited V 3.00 Update and Offer – Analytics & Forecasts – 5 January 2025

January 5, 2025
Why America’s economy is soaring ahead of its rivals

Why America’s economy is soaring ahead of its rivals

0
Dollar climbs after Donald Trump’s Brics tariff threat and French political woes

Dollar climbs after Donald Trump’s Brics tariff threat and French political woes

0
Nato chief Mark Rutte’s warning to Trump

Nato chief Mark Rutte’s warning to Trump

0
Top Federal Reserve official warns progress on taming US inflation ‘may be stalling’

Top Federal Reserve official warns progress on taming US inflation ‘may be stalling’

0
Donald Trump threatens new tariffs on Canada

Donald Trump threatens new tariffs on Canada

July 11, 2025
Now we wait on the Trump EU tariff headline

Now we wait on the Trump EU tariff headline

July 11, 2025
GMX Exploiter Starts Returning $40M in Stolen Crypto After Bounty Deal

GMX Exploiter Starts Returning $40M in Stolen Crypto After Bounty Deal

July 11, 2025
How The New York Times is (still) getting gamed by the right

How The New York Times is (still) getting gamed by the right

July 11, 2025

Live Prices

© 2024 Investor News Today

No Result
View All Result
  • Home
  • Market
  • Business
  • Finance
  • Investing
  • Real Estate
  • Commodities
  • Crypto
  • Blockchain
  • Personal Finance
  • Tech

© 2024 Investor News Today