Nord Stream blasts redraw the global gas trading map

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One of the less commented upon effects of the Nord Stream blasts will be to make the recent European thirst for US LNG more permanent. The damage inflicted on the pipeline may durably redraw the global gas trading map by structurally reducing Russia’s gas export capacity to the west.

European imports of US LNG surged in early 2022, spurred by tight European gas balances and reduced Russian shipments, and have since remained elevated as Russia has steadily deepened its export cuts, culminating with the full Nord Stream closure since late August.

With Russia’s gas export capacity to Europe now badly hit, US gas exporters can expect Europe to remain a US gas magnet for a lot longer.

Asia’s LNG imports, by contrast, fell to a multi-year low last week. Likely factors include strong competition from Europe buyers pushing the prices up, economic headwinds in China, and seasonal holidays.

Image: Europe LNG imports history from the US.

Read the article online at: https://www.worldpipelines.com/special-reports/04102022/nord-stream-blasts-redraw-the-global-gas-trading-map/