#Russian Liquefied Natural Gas suppliers

[mariacallous]

Editor's note: This report is the first in a series on “Europe’s energy transition: Balancing the trilemma” produced by the Brookings Institution in partnership with the Fundação Francisco Manuel dos Santos.

Providing a stable energy supply is often described in terms of a “trilemma”—a balance between supply security, environmental sustainability, and affordability. Of the three pillars of energy supply, security is the easiest to take for granted. Supply seems fine until it isn’t. Security of fossil fuel supply is particularly easy to ignore in countries that are striving to greatly reduce their fossil fuel consumption for climate reasons. The political focus is on building renewable energy and zero-carbon systems, and mitigating the economic, social, and political costs of transition; the thought was that the existing system would take care of itself until it was phased out. This was the case for much of Europe until two years ago.

Russia’s full-scale invasion of Ukraine on February 24, 2022, shocked Europeans into realizing that they could no longer take the security of their fossil fuel supply for granted. The assumption had been that Europe and Russia were locked into a mutually beneficial, secure relationship, since Europe needed gas and Russia had no infrastructure to sell that gas anywhere else. That belief turned out to be wrong. 

When the war began, Europe was importing a variety of energy products from Russia, including crude oil and oil products, uranium products, coal, and liquefied natural gas (LNG). But the Kremlin’s sharpest energy weapon was natural gas, delivered by the state-backed gas monopolist Gazprom via pipelines and based on long-term contracts. Europe needs gas for power generation, household heating, and industrial processes.

Before the invasion, more than 40% of Europe’s imported natural gas came from Russia, its single largest supplier, delivered via four main pipelines. Some European countries relied on Russia for more than 80% of their gas supply, including Austria and Latvia. But Germany was by far Russia’s largest gas customer by volume, importing nearly twice the volume of Italy, the next largest customer. “Oil and gas combined account for 60% of primary energy,” wrote the Economist in May 2022, “and Russia has long been the biggest supply of both. On the eve of the war in Ukraine, it provided a third of Germany’s oil, around half its coal imports, and more than half its gas.”  

This paper launches a project on European energy security in turbulent times by analyzing the European response to drastically reduced supplies of Russian pipeline gas. Future papers in the series will delve more deeply into specific aspects of European energy security and their policy implications. 

Russia’s actions to cut off gas supply to Europe starting in May 2022 were particularly virulent because it was extremely difficult to cope with the loss of such a large volume of gas. Other regional sources of pipeline gas (e.g., from the North Sea) have been declining and key sectors of European industry (e.g., chemicals) depend on gas as their primary energy source. LNG is a potential substitute for pipeline gas, but it requires specialized infrastructure and global LNG markets were already tight, with much of the world’s supply going to Asia.

The story of Europe’s adjustment to its main supplier of natural gas turning off the taps is generally told in heroic terms: with the continent securing new supply, conserving or substituting (often with generous government subsidies for industry and/or consumers) in order to weather the storm, and throwing Russia’s weaponization of gas back in its face through declining revenues. This narrative is not false, and the scale and speed of the response would certainly have been politically unimaginable before the invasion. But the self-congratulatory tale masks the fact that there were substantial regional differences in both energy supply and response to the crisis, which will make it difficult to generate a Europe-wide political response in the future. 

Even more importantly, the decoupling is by no means complete. Overall, in 2023, Europe still imported 14.8% of its total gas supply from Russia, with 8.7% arriving via pipelines (25.1 billion cubic meters or bcm) and 6.1% as LNG (17.8 bcm). (For comparison, during the first quarter of 2021, 47% of Europe’s total gas supply came from Russia, 43% via pipeline and 4% as LNG.)This means that the handful of member states that have not been able to or have not chosen to reduce their dependency remain highly vulnerable to Russia’s weaponization of energy imports. 

[head-post]

EU imports more gas from Russia than US

The EU imported significantly more gas from Russia than the United States between April and July, according to Euractiv.

The EU imported 13 billion cubic metres (bcm) of Russian gas in the second quarter of 2024, for a total of 26 bcm this year. Meanwhile, quarterly imports of liquefied natural gas (LNG) from the US fell to 9.5 bcm, totalling 22 bcm, Bruegel reported.

European utilities paid a whopping 10 billion euros to Russian state-owned Gazprom. Ben McWilliams, an associate fellow at Bruegel, said:

Overall imports are down and flexible US LNG is squeezed out at the margin.

Norway remains the largest natural gas supplier to the EU with 21 bcm of supplies in the second quarter, whereas Russia strengthens its position in second place.

Past attempts to raise the issue of sanctions against Russian gas failed. EU gas imports would be on the agenda of the energy ministers’ meeting on 15 October in the context of winter preparedness, as it was expected that supplies through Ukraine could be halted.

Read more HERE

[influencermagazineuk]

Energy Prices Fall Today, But Expect Higher Bills Ahead

A new file warns that while the power price limit has fallen, families may struggle with £600 more on their annual bills within months as wholesale gasoline costs keep growing. The Energy and Climate Intelligence Unit is calling for political action to reduce the reliance of the United Kingdom on natural gasoline. The electricity price cap has dropped by 7% to its most recent limit of the maximum amount suppliers can charge for electricity. That puts typical annual bills some £500 less than last year, now averaging £1,568 until the next review in October. Analysts at the Energy and Climate Intelligence Unit have said that better wholesale prices could add another £600 to winter bills. Experts also warned the price cap should rise by £200 in October alone and may have to stay high until June next year, potentially reaching £1,723 a year. Consumer groups said the fixed-rate deals were a way to escape the fee cap-altering options, citing increased options, despite constrained opposition in the current years. The excessive price of wholesale fuel in Europe occurs due to international call-for, specially from Asia for liquefied natural fuel, replacing Russian components lost on the grounds of Ukraine invasion in 2022. EU sanctions on Russian LNG could further squeeze the supply of fuel across Europe and directly the household power prices in the UK, which were below £1,090 before the war. The ECIU warns that by September 2025, households could pay another £2,600 because of the continuing gas crisis; all totalled up, that brings extra costs of as much as £4,000 per household. Energy has become an election issue, central to some parties' appeal to the electorate with an emphasis on charges and the environmental impact of gas usage. Dr. Simon Cran-McGreehin of ECIU analyses how investing in home insulation, electric warmth pumps, and British renewables could lower dependence on overseas fuel and cushion fees. Energy's Emily Seymour says consumers need to compare fixed offers with the price cap, as expenses vary, and look for the great option. She recommends shorter, fixed time periods if one is thinking of fixing strength payments. In summary, while the electricity price cap drops for the time being, families should get ready for probably better payments in advance. Political measures aimed at diversifying electricity assets and breaking their reliance on imported fuel ease future fee rises and will ensure more solid power expenses for UK consumers. Read the full article

[cyberbenb]

Finland's Gasum to cease Russian LNG imports in compliance with EU sanctions

Finland’s Gasum, a major gas supplier to the Nordic region, announced on June 25 that it will cease purchasing and importing Russian liquefied natural gas (LNG) in July in accordance with new European Source : kyivindependent.com/finlands-…

[brianwhary]

Analyzing European Reliance on Russian Gas and the Shift to LNG

The European energy landscape is undergoing a transformative shift as countries seek to diversify their gas supplies and reduce dependency on Russian gas imports. This trend analysis delves into the dynamics of European reliance on Russian gas and the emerging trend towards liquefied natural gas (LNG) as an alternative source of energy.

Understanding European Reliance on Russian Gas

Europe has long been dependent on Russian gas imports, with Gazprom, the state-owned energy company, serving as a primary supplier to many European countries. This reliance on Russian gas has raised concerns about energy security and geopolitical risks, particularly in light of past disputes between Russia and transit countries.

For more insights into the European reliance on natural gas in Russia, download a free report sample

Factors Driving the Shift to LNG

1. Diversification of Gas Supplies

In response to concerns about energy security and geopolitical risks, European countries are actively seeking to diversify their gas supplies by reducing dependency on Russian gas and increasing imports of LNG from global markets. Diversification efforts aim to enhance resilience to supply disruptions and mitigate the impact of geopolitical tensions on energy markets.

2. Flexibility and Versatility

LNG offers greater flexibility and versatility compared to pipeline gas, allowing countries to access a wider range of gas sources and adjust import volumes according to demand fluctuations. LNG terminals and infrastructure investments enable European countries to import gas from diverse suppliers, including the United States, Qatar, and Australia.

3. Environmental Considerations

The shift to LNG is also driven by environmental considerations, as natural gas is perceived as a cleaner alternative to coal and oil, with lower carbon emissions. As European countries pursue decarbonization goals and transition towards renewable energy sources, LNG serves as a bridge fuel that complements intermittent renewables and facilitates the transition to a low-carbon energy future.

Market Dynamics and Trends

1. Expansion of LNG Infrastructure

European countries are investing in LNG infrastructure, including terminals, storage facilities, and regasification plants, to accommodate growing imports of LNG. This infrastructure expansion enhances market access and liquidity, enabling more efficient trade and price competitiveness in the European gas market.

2. Contract Renegotiations and Diversification

In light of changing market dynamics and geopolitical developments, European countries are renegotiating gas supply contracts with Russian suppliers and diversifying their LNG portfolios. Long-term contracts are being restructured to include more flexible terms and pricing mechanisms, while new LNG import deals are being pursued to enhance supply security and optimize pricing.

3. Regulatory Support and Policy Initiatives

Regulatory support and policy initiatives play a crucial role in facilitating the shift to LNG and promoting competition in the European gas market. Initiatives such as the EU Gas Directive and the European Green Deal encourage investments in LNG infrastructure, promote transparency and market liberalization, and foster the development of a competitive and sustainable gas market in Europe.

Conclusion

In conclusion, the European reliance on Russian gas and the shift towards LNG represent pivotal developments shaping the future of the European energy landscape. By diversifying gas supplies, enhancing infrastructure resilience, and promoting regulatory reforms, European countries can strengthen energy security, mitigate geopolitical risks, and accelerate the transition to a sustainable and resilient energy future.

[yourusatoday]

Analyzing European Reliance on Russian Gas and the Shift to LNG: A Trend Analysis

Europe's energy landscape stands at a crossroads, with geopolitical dynamics and market forces shaping its reliance on Russian gas and the gradual transition towards liquefied natural gas (LNG). In this comprehensive analysis, we delve into the intricate nuances of Europe's energy dynamics, examining the factors driving its dependence on Russian gas and the burgeoning trend towards LNG diversification.

Understanding European Reliance on Russian Gas

Europe has long been a significant consumer of Russian natural gas, with pipelines traversing vast distances to supply energy to homes, industries, and power plants across the continent. The historical ties between Russia and European energy markets have fostered a complex interdependence, characterized by contractual agreements and strategic partnerships.

Key Factors Driving Reliance:

Geopolitical Considerations: Geopolitical considerations play a pivotal role in shaping Europe's energy security calculus. The geopolitics of gas supply, influenced by factors such as territorial disputes, regional conflicts, and diplomatic tensions, underscore the importance of diversifying energy sources and routes.

Infrastructure Connectivity: The infrastructure connectivity between Russia and Europe, facilitated by pipelines such as Nord Stream and TurkStream, has bolstered the reliability and efficiency of gas transit. However, concerns over energy dependence and supply disruptions persist, prompting calls for enhanced diversification measures.

The Shift to LNG: Trends and Implications

Amidst evolving geopolitical dynamics and environmental imperatives, Europe is witnessing a gradual shift towards LNG as a viable alternative to traditional pipeline gas. LNG offers flexibility, scalability, and enhanced security of supply, positioning it as a compelling option for meeting Europe's energy needs in the 21st century.

Emerging Trends in LNG Adoption:

Diversification of Supply: The diversification of LNG supply sources, including the United States, Qatar, and Australia, reduces Europe's reliance on any single supplier, mitigating geopolitical risks and enhancing market competitiveness.

Investments in Infrastructure: Investments in LNG infrastructure, such as terminals and regasification facilities, signify Europe's commitment to expanding its LNG import capacity. The development of floating storage and regasification units (FSRUs) offers cost-effective solutions for accessing LNG markets.

Environmental Considerations: The environmental benefits of LNG, including lower carbon emissions and reduced air pollutants, align with Europe's climate objectives and sustainability goals. LNG serves as a transitional fuel, bridging the gap between conventional fossil fuels and renewable energy sources.

For more insights into the European reliance on natural gas in Russia, download a free report sample

Challenges and Opportunities Ahead

Despite the momentum towards LNG diversification, Europe faces a myriad of challenges and opportunities in its quest for energy security and sustainability.

Market Volatility: Fluctuations in global energy markets, coupled with geopolitical uncertainties, pose challenges to long-term investment planning and project financing in the LNG sector.

Regulatory Framework: The development of a coherent regulatory framework, encompassing trade agreements, tariff structures, and environmental standards, is essential for fostering a conducive investment climate and ensuring market transparency.

Technological Innovation: Technological innovation, including advancements in liquefaction and shipping technologies, holds the key to unlocking new frontiers in LNG production, distribution, and utilization.

Conclusion

In conclusion, the European reliance on Russian gas and the transition towards LNG represent pivotal dimensions of the continent's energy landscape. By embracing diversification strategies, investing in infrastructure resilience, and fostering innovation-driven growth, Europe can navigate the complexities of the global energy market while safeguarding its energy security and environmental stewardship.

[astuteconnect]

Unmasking the Power Play: Gas Geopolitics in Europe

Throughout history, the ever-changing landscape of European Geopolitics has been sculpted by various factors. One such pivotal factor is the abundance and accessibility of energy resources, with a particular emphasis on natural gas. The intricate dynamics of gas supply and demand and the politics that envelop it hold immense significance for European nations. These factors have far-reaching implications, transcending mere economic stability and permeating into the realms of foreign policy and regional power structures.

The Importance of Natural Gas

Natural gas holds a pivotal position in fulfilling Europe's energy requirements, serving as a cornerstone for various purposes. It is extensively utilized for residential heating and electricity generation and as a vital component in multiple industries. The significance of natural gas in Europe cannot be overstated, especially in light of the region's concerted efforts to shift towards cleaner and more sustainable energy sources. With its comparatively lower carbon emissions compared to coal and oil, natural gas is often regarded as a transitional fuel, facilitating the transition towards a renewable-based energy system.

Russia's Role

Throughout history, Russia has held the position of Europe's dominant gas supplier, a relationship that goes far beyond a mere economic transaction. The interconnection between Russian gas exports and geopolitics is profound. The reliance of European nations on Russian gas has become a significant point of concern when discussing energy security and political autonomy.

The dependency of European countries on Russian gas has repeatedly surfaced as a significant topic in discussions surrounding energy security. The reliance on a single supplier for a crucial energy resource raises concerns about vulnerability to supply disruptions or political manipulation. This vulnerability can potentially have far-reaching consequences, affecting not only the economic stability of nations but also their ability to assert political autonomy.

The supply of Russian gas to Europe has been intricately linked with political influence. Leveraging its position as a major gas supplier, Russia can exert significant control over energy-dependent European nations. The manipulation of gas supplies or the threat of cutting off gas exports has been used as a tool to shape political decisions, extract concessions, or exert pressure on European countries.

Diversification Efforts

In response to this dependency, European countries have been actively seeking to diversify their gas sources. This includes increased imports of Liquefied Natural Gas (LNG) from countries like the United States and Qatar and investments in renewable energy. The development of new pipelines, like the Southern Gas Corridor, which brings gas from the Caspian Sea region, is also part of this diversification strategy.

The Impact of Geopolitical Tensions

Geopolitical tensions, especially those involving Russia, have a direct impact on Europe's gas supply. Conflicts like the Ukraine crisis have prompted Europe to reassess its energy policies. These tensions have also led to a push for greater energy independence, which includes diversifying suppliers and investing in renewable energy sources and energy efficiency.

Future Challenges and Opportunities

Looking ahead, Europe faces several challenges and opportunities in the realm of gas geopolitics. The transition towards renewable energy is both a challenge and an opportunity. While it reduces dependency on external gas supplies, it requires significant investment and infrastructural changes.

The role of emerging technologies in natural gas extraction and transportation, such as fracking and new LNG technologies, also presents both challenges and opportunities. While they offer more sources of gas, they also raise environmental concerns.

Conclusion

The geopolitics of gas in Europe is a complex and evolving issue deeply rooted in the region's history, economy, and political structures. As Europe navigates its way toward energy security and independence, the role of natural gas, its suppliers, and the broader geopolitical landscape will continue to play a crucial role in shaping its future.

Original Source: https://astuteconnect.my-online.store/page/europe-geopolitics

[new-haryanvi-ragni]

Russian gas giant Gazprom resumes regular LNG supplies to India's GAIL I Why it is crucial for India?

Nearly a year after Russian gas supplier giant Gazprom halted supplies to India due to the ongoing war, it has resumed supplying Liquefied Natural Gas (LNG) to Indian state gas utility GAIL. According to GAIL chairman Sandeep Kumar Gupta, the resumption of supplies, which came to a halt in June last year, has shored up gas availability in the country. from IndiaTV Business: Google News Feed…

[gulfseapetroleumbh]

Russian Liquefied Natural Gas suppliers

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[beardedmrbean]

WASHINGTON (Reuters) - The United States is in talks with major energy-producing countries and companies around the world over a diversion of supplies to Europe if needed in the event of a Russian invasion of Ukraine, senior Biden administration officials said on Tuesday.

Speaking to reporters on a call, the officials did not name the specific countries or companies they were in talks with to ensure an uninterrupted energy flow into Europe for the remainder of winter, but said they were a broad range of suppliers, including sellers of liquefied natural gas (LNG).

"We've been working to identify additional volumes of non- Russian natural gas from various areas of the world; from North Africa and the Middle East to Asia and the United States," a senior administration official said, speaking on condition of anonymity.

"Correspondingly, we're...in discussions with major natural gas producers around the globe to understand their capacity and willingness to temporarily surge natural gas output and to allocate these volumes to European buyers," the official said.

Russia has massed an estimated 100,000 troops within reach of Ukraine's border, surrounding the country from the north, east and south.

Russia denies that it plans an invasion and Moscow has cited the Western response as evidence that Russia is the target, not the instigator, of aggression.

The European Union depends on Russia for around a third of its gas supplies, and U.S. sanctions over any conflict could disrupt that supply.

Any interruptions to Russia's gas supply to Europe would exacerbate an existing energy crisis caused by a shortage. Record power prices have driven up consumer energy bills as well as business costs and sparked protests in some countries.

[mariacallous]

Russian President Vladimir Putin’s war on Ukraine has led to a reassertion of national security concerns in every facet of Western countries’ policy. The most obvious aspect is military security, with the United States and the Europeans ramping up ammunition production and wrangling over tank deliveries. But as far as Europe is concerned, the even more urgent priority is energy security. As Russia’s natural gas supplies were cut off and prices surged to record levels, European governments have spent more on subsidizing the energy bills of their populations, stockpiling gas, and bailing out bankrupt energy companies than they have either on their militaries or on supporting Ukraine.

The emergency energy programs were short-term expedients. The urgent question now is which direction long-term energy security is to be found.

The crisis struck Europe in the midst of an accelerated energy transition away from fossil fuels, one driven by climate concerns and a program of green industrial policy. Since 2020, Europe has been doubling down on green energy policy, with the Next Generation EU investment program, the Fit for 55 energy transition framework, rising carbon emissions pricing, and a flood of national programs. Britain recently celebrated a day without any use of coal. Spain celebrated a day entirely on solar and wind. European utilities are driving sectors such as offshore wind. Costs for clean energy were falling, in part due to the parallel efforts being made by China in the cheap mass manufacture of solar panels. The European car industry was setting a course for electrification by the mid-2030s. European car producers and engineering companies saw not risk but huge opportunities in China, which is the dominant global force in electric vehicles.

Moscow’s aggression, on top of deteriorating relations between Washington and Beijing, has troubled this outlook. Indeed, some hawkish voices in the United States have gone so far as to suggest that the new geopolitical configuration puts the entire European vision of energy transition in question. They argue that the basic math in favor of fossil fuels is now triumphing over green ideology. History has pronounced its judgment against Europe’s naive and unrealistic ambitions for the renewable energy transition and in favor of fossil fuels as a key element of Western grand strategy and nuclear power as a carbon-neutral power source.

Germany’s decision to shut down nuclear and exit coal, for example, left it dependent on Russian gas and intermittent renewables. Little wonder that it is now scrambling to buy liquefied natural gas from around the world. When you are up against Putin’s tanks, so Europe’s critics argue, what you need is not sun and wind energy but gas from a safe source, such as Texas.

This conservative, national security-based case for fossil fuels and nuclear power has the ring of hard-boiled realism about it. It is true that renewables are still undergoing development and China is right now the world’s premier supplier of solar panels. The problem of intermittency is real. We need more batteries and pumped water storage. Shutting down Germany’s nuclear fleet has not helped the cause of decarbonization; Berlin has had to scramble to open gasification terminals. And when gas supplies seemed unreliable, European utility companies imported more coal than they had in a while.

But though superficially compelling, is this really a fair assessment of Europe’s energy transition? How bad has the European crisis actually been? How far did Europe and the rest of the global energy system actually retreat from renewables in 2022? And what does this portend for the energy transition going forward?

Let us start with the simple fact that Europe’s lights have stayed on and no one has actually gone without power. Europe’s situation should not be confused with that of Texas in 2021. The story of 2022 European energy policy is one of stress, not of open crisis and blackouts.

To understand why, all you have to do is to consult the 2022 data for energy demand and supply. What it shows is not a wholesale return to fossil fuels, but rather an ongoing transition to a new and more diversified energy mix in which the most rapidly growing components are renewables.

One point that critics of European energy policy commonly get wrong is the balance of demand and supply. Criticisms tend to focus on the failure to invest in reliable sources of supply, which are said to be fossil fuels and nuclear. In fact, the crunch in global energy markets in 2021 and 2022 was first driven not by supply shortfalls but by an unusual demand surge linked to the recovery from the COVID-19 lockdowns. This started in China in 2021 and rippled through to Europe in 2022, sending global gas markets into shock.

By the same logic, in the second half of 2022 the most important contributor to managing the European gas crisis was not switching to coal, but a reduction in demand. Industrial lobbyists who insisted that it could not be done were proven wrong. In Germany, for example, energy-intensive industries curbed production but less energy-intensive production remained robust, a rebalancing that enabled a reduction in energy consumption without a collapse in output. All told, European electricity consumption fell by 3.5 percent in 2022. Between August 2022 and January 2023, gas consumption in Europe was 19.3 percent lower than in the previous five years.

Admittedly, there were problems on the supply side in 2022. Hydropower production was cut back by low rainfall. And the nuclear fleet proved unreliable too. Germany’s closures had long been planned for and did not prevent Germany emerging as a net electricity exporter in 2022. The real problem was in France, where nuclear generation plunged to a historic low. But although France has clearly neglected its reactor fleet, this was more a matter of penny-pinching management and unfortunate timing than a strategic turn against atomic power. Certainly, Paris cannot be accused of giving excessive attention to renewables at the expense of nuclear power; France has seen one of the slowest build-outs of solar and wind anywhere in Europe.

This combination of demand and supply factors put pressures on gas and coal stations. Coal consumption did rise in the first half of 2022, which generated an unwelcome blip in emissions. Across Europe, the 26 coal power plant units were reactivated or had their lifetimes extended. This provided a reassuring cushion of reserve capacity. But because the utilization rate of these power plants was as low as 18 percent, it entailed little extra coal consumption. Even at its peak in late summer 2022, total coal consumption remained well below pre-pandemic levels, and since September 2022 coal consumption in Europe has resumed its downward trend. As Lauri Myllyvirta, an analyst at the Centre for Research on Energy and Clean Air, comments, the net result is a marginal shift from gas to coal, but since coal consumption is dropping it seems tendentious to speak of a return to coal. All told, Europe’s crisis-driven adjustments in 2022 added only 0.3 percent to global coal emissions in 2022. In 2023, with hydropower making a larger contribution and the French nuclear fleet recovering, we should expect demand for coal to fall to record lows.

Meanwhile, there is absolutely no sign of any retreat by investors from renewables, rather the reverse. Far from falling back in love with gas, oil, and coal, the world clearly realized in 2022 that fossil fuels are an expensive and fickle trap. Investment in solar in Europe is booming. The latest data from SolarPower Europe, an industry trade body, shows that nearly 32 gigawatts of solar capacity were installed across Europe in 2022, a growth of 33 percent from 2021. In terms of generation, 2022 will go down in history as the year in which solar and wind overtook every other form of electricity generation in Europe—gas, nuclear, or coal. And 2023 is likely to see the trend continued.

This investment is happening because solar and wind offer power at unbeatably low cost. Far from depending on subsidies, as critics allege, European wind power now operates on such a profitable basis that it returns revenue to European treasuries. Current tenders for power-supply contracts are attracting bids from wind farms at price levels so low that they redefine the meaning of cheap electricity.

By contrast, the two largest nuclear reactor projects currently under construction in Europe, in the U.K. and France, are viable only with outlandish levels of price subsidy. Smaller or less technologically ambitious atomic power stations may be less uncompetitive. But Hungary is relying on Russian subsidies to make its nuclear program viable. And Poland is flanking its nuclear enthusiasm with a new commitment to renewables.

Meanwhile, the electric vehicle (EV) revolution is proceeding apace. Purchase of EVs has taken off across Europe. In the Netherlands, Norway, and Sweden, they are now the norm. In a significant new development, Chinese EV producers are entering the European market at a large scale, which will drive down prices, as has happened with solar. The giants of the motor vehicle industry are beginning the process of running down and halting the development of new internal combustion engine drive trains. The European commitment to end the sale of new internal combustion engine vehicles by 2035 remains intact, despite a last-minute effort by the German government to carve out an exemption for high-end vehicles running on synthetic biofuels.

The United States’ self-appointed realists are fond of accusing Europe’s energy policy-makers of making strategic choices whilst blinded by green ideology. But who is wearing the ideological glasses? As far as Europe is concerned, the suggestion from the U.S. side that Putin’s war has proven the indispensable importance of fossil fuels and provoked a general retreat from the energy transition is quite simply at odds with the facts.

European governments, businesses, and society are accelerating the energy transition. And they aren’t doing so on ideological grounds, or because they are blind to the risks of new dependencies (notably China). They are doing so because—in a world of tough choices and uncertainty, including about U.S. politics, mounting ecological crisis, and geopolitical risk—the green energy transition simply looks like the smartest bet.

[citizenrecord]

Europe a 'few years' away from overcoming energy deficit, OMV chief says

Europe is a “few years” away from overcoming its current energy deficit triggered by the loss of Russian gas supply, according to Alfred Stern, chief executive of Austrian energy group OMV.

The continent is in the middle of its worst energy crisis after Russia, the region’s biggest natural gas supplier, curtailed exports sharply in response to EU sanctions over its military offensive in Ukraine.

However, the crisis has been a few years in the making. Spending on new oil and gas projects has nearly dried up amid pressure from investors, who have adopted more pro-renewable energy strategies in recent years.

This issue is “bigger than Europe” and is a result of underinvestment in the energy sector, as well as from “thinking that we could magically move to renewable energy overnight”, Mr Stern told The National at the Adipec energy summit in Abu Dhabi.

“Fixing this up will require significant investments, and typically, our industry is one that has very long investment cycles,” he said.

Upstream oil and gas investment needs to increase and be sustained near the pre-coronavirus levels of $525 billion through to 2030 to ensure market balance, according to the International Energy Forum.

Upstream investment in 2021 was depressed for a second consecutive year at $341bn — about 25 per cent below 2019 levels.

To replace Russian gas in the short-term, some European countries have brought coal-fired power plants back into operation and this has triggered concerns about their ability to meet climate commitments.

“Too much coal power is coming back on stream, but the carbon-dioxide footprint is much better with natural gas … we should make sure that we bring this back on track because, otherwise, we are going to go backwards on climate change,” said Mr Stern.

Europe boosted its liquefied natural gas (LNG) imports from the US and Gulf countries before the start of the peak winter season.

Austria’s gas storage sites are completely full and now the EU country is looking to secure supplies for 2023.

Last week, OMV signed a preliminary agreement with Adnoc with the aim of purchasing an LNG cargo for next year’s winter.

“Even if the Russian supplies should stop, we can supply 100 per cent of our customers in Austria with non-Russian gas … we are already looking to next winter and that is why it was important to sign this [deal],” said Mr Stern.

OMV, which has a long-term LNG contract with Qatar, is “also looking at the US and other sources of supply”, said Mr Stern.

The US, which exported 11.1 billion cubic feet per day of LNG in the first half of 2022, has more LNG export capacity than any other country, according to the US Energy Information Administration.

The current strains on gas supply have led to energy shortages in several parts of the developing world that rely on imported gas, notably Pakistan and Bangladesh.

Meanwhile, major growth markets for gas, such as India and China, have sharply reduced their LNG imports in 2022.

“Developing countries can no longer afford the [high LNG prices] … we need to ramp up capacity,” said Mr Stern.

[melbournenewsvine]

Energy giant Origin Energy expects a significant increase in profits from higher gas prices

Australian retail and energy company Origin Energy reported a significant increase in profits on the back of higher natural gas prices. In a statement to ASX this morning, the company said it expects full-year core EBITDA (earnings before interest, tax, and amortization) from its energy markets business to be between $500 million and $650 million, up from $365 million last year. Origin Energy flagged earnings upgrade. attributed to him:Louie Davis Origin, in its full annual results in August, said it was unable to provide any profit targets yet for next year due to ongoing uncertainty in the domestic and international energy markets. “The improvement in EBITDA potential energy markets compared to the prior year is driven by the expected increase in total natural gas earnings,” the company said in a statement to ASX this morning. While soaring commodity prices have hurt the company’s domestic energy division, sales revenue from the Australia-Pacific liquefied natural gas (APLNG) project jointly owned by Origin has jumped to record levels, as Western nations scramble to reduce their dependence on Russian coal, oil and gas. . Origin said Wednesday that its total electricity earnings are expected to remain pent-up because higher energy input costs are only partially priced in regulated tariffs. Coal supply problems are limiting production at its narrow, 2,880-megawatt generator in New South Wales, forcing it to source expensive coal from other suppliers and buy more power from the grid to meet customer needs. Origin said it has contracted a 4.4 million tons of coal from a 5 to 6 million tons target, and expects to reach that target by the end of 2022. Contracted coal reflects legacy contracts and contracts priced at forward market prices at the time of contracting. Coal rail deliveries and mine performance have improved significantly in recent months, but there is still a risk of a coal delivery shortfall. Source link Originally published at Melbourne News Vine

[insideusnet]

EU Countries Turn to Africa in Bid to Replace Russian Gas : Inside US

EU Countries Turn to Africa in Bid to Replace Russian Gas : Inside US

By KRISTA LARSON, Associated Press DAKAR, Senegal (AP) — A new liquefied natural gas project off Africa’s western coast may only be 80% complete, but already the prospect of a new energy supplier has drawn visits from the leaders of Poland and Germany. The initial field near Senegal and Mauritania’s coastlines is expected to contain about 15 trillion cubic feet (425 billion cubic meters) of…

[reportwire]

EU countries turn to Africa in bid to replace Russian gas

EU countries turn to Africa in bid to replace Russian gas

DAKAR, Senegal — A new liquefied natural gas project off Africa‘s western coast may only be 80% complete, but already the prospect of a new energy supplier has drawn visits from the leaders of Poland and Germany. The initial field near Senegal and Mauritania’s coastlines is expected to contain about 15 trillion cubic feet (425 billion cubic meters) of gas, five times more than what gas-dependent…

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Egypt’s LNG exports to Europe receive boost amid gas crisis

Egypt is beefing up its liquefied natural gas exports to Europe, paving the way to becoming a regional energy centre, as the continent's biggest gas supplier, Russia, disrupts supply.

In the first six months of this year, more than 72 per cent of Egypt’s LNG exports went to Europe, compared with 29 per cent in all of last year, Refinitiv LNG flows data shows.

Although the North African country has limited natural gas itself, paling in comparison to the US, the world's top producer, or Russia in second place, it has built a role through agreements with partners and its strategic geographic location.

The US produced 934.2 billion cubic metres (bcm) of natural gas last year, about 23 per cent of the world’s total, while Russia produced 701.7 bcm and Egypt produced 67.8 bcm, according to the latest BP Statistical Review of World Energy.

“Egypt is not going to make up for all the Russian volumes,” Olumide Ajayi, senior LNG analyst at Refinitiv, told The National.

However, “there is momentum for Egypt to become a regional energy exporter to Europe and connect Europe to the region”, he said.

Read More : https://www.thenationalnews.com/business/energy/2022/07/20/egypts-lng-exports-to-europe-receive-boost-amid-gas-crisis/