Reuters has determined that the Joe Biden administration is in talks with companies and countries that supply liquefied natural gas (LNG) and pipeline gas about a possible diversion of supplies to Europe in the event of a Russian invasion of Ukraine. Aggression will lead to sanctions against Russia, but European leaders are still determining their scope. Covering the gas sector with sanctions is the most controversial. Gas prices have been at record levels for several weeks, and the tightening of the tap water will also affect European economies.
The Americans do not reveal who they are talking about, but experts speculate that they are American companies extracting shale gas and Qatar, the world’s largest exporter of liquefied natural gas. A meeting between the President of the United States and the Emir of Qatar is scheduled for January 31.
Most EU countries can regasify LNG
LNG can also be imported from some African countries (Angola, Algeria, Nigeria), Australia and Malaysia. The closest source is Norway, which can use pipeline systems to transport gas from the North Sea to Britain.
Most EU countries have stations where LNG is regasified. Spain can convert gas back into larger gas – 70 billion cubic meters. Gas per year, Great Britain – 50 billion cubic meters, France – 35 billion cubic meters. Poland has the capacity to process 5 billion cubic meters. There are even LNG terminals in small Malta, but the largest European economy, Germany, does not. During the dozens of years of Angela Merkel’s rule, the state has failed to diversify the sources of gas supply, but if there is a need to increase the supply of liquefied natural gas to Europe and also secure it for Germany’s needs, other countries have sufficient capacity to “serve” Germany.
Gazprom can turn on the tap when policy requires it
Everyone hopes that the aggression will not pass and that the search for new sources of supplies will turn into an explosion. However, one must be prepared for any eventuality, as Vladimir Putin, who has an influence on what is happening in Gazprom, has repeatedly proven that he can turn off the gas without emotion to only prove his dominance.
One need not look far for examples: when Moldova began to build active alliances with the West in 2021, Russia offered it exorbitant terms in terms of selling gas prices. Unfortunately, the pro-European measures coincided with the expiration of the long-term supply contract. The situation became very tense and a state of emergency was declared in Moldova. Deliveries were immediately proposed by other companies, including the Polish PGNiG.
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