EUROPE SEEKS NEW GAS SOURCES AS IT WEANS OFF RUSSIAN IMPORTS

Paul Wiseman discusses the sudden increase in LNG projects and contracts in the wake of Russia’s war in Ukraine As the eu and other countries have pledged to stop purchasing Russian fossil fuels – especially natural gas – that decision has created a shortage of gas on the international market. The EU and others are scrambling to pivot to LNG by building new regasification plants and searching for available trading partners. This is a tall order, as the International Energy Agency (IEA) reports that 45% of the EU’s 2021 natural gas imports originated in Russia, and that this gas made up 40% of the EU’s total usage that year. Total Russian imports amounted to 155 billion m3. While European nations are set on eventually reducing reliance on fossil fuels from anywhere, this will take years, meaning they must find new sources immediately. But almost every LNG plant is at full capacity, whether on the liquefaction or regasification side, resulting in a flurry of new projects along with government promises to expedite licensing and approval for those new builds. It is also of note that April 2022 LNG imports into Europe are at the second highest level ever, after January of...