IMG.gif

Majors Poised to Seize on Russian Gas Void

Copyright © 2022 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.
ss1022509726-lng-tankers

Europe’s efforts to diversify its gas supplies away from Russia could offer a significant opportunity for some of the Western majors to step in to fill the gap. The European Union is hoping to source an additional 50 billion cubic meters of gas (37 million tons) through additional LNG imports, as part of a plan to trim Russian gas imports by two-thirds (100 Bcm) by the end of this year. European majors, particularly Shell and TotalEnergies, that have spent the last five years building flexible LNG portfolios, are better placed to capture upside in spot markets than their US competitors. European Commissioner for Energy Kadri Simson estimated that the bloc had already cut its dependence on Russian gas from 40% of total supplies in April 2021 to 26% in April this year. With total LNG sales of around 124 million tons, Shell, Total and BP accounted for one-third of the 372 million tons of LNG sold globally in 2021. Energy Intelligence assessed LNG prices for southwest Europe at $17.50 per million Btu for the week of May 16, up from $9/MMBtu at the same time last year, with spot LNG netbacks rising as high as an estimated $23-$25/MMBtu.

Topics:
Corporate Strategy , LNG Supply, Majors, LNG Spot Trade
#
Despite big talk, EU imports of Russian crude have rebounded since May, while products imports are even higher than last year.
Thu, Jun 23, 2022
The Coral South floating LNG project offshore Mozambique is preparing for start-up but the outlook for further liquefaction schemes is hazy.
Tue, Jun 28, 2022
We see Eni's postponement of its Plenitude IPO as a sign that Western energy firms are once again struggling to tap equity markets.
Tue, Jun 28, 2022