10 votes

Winter is coming and Europe is running scarily low on gas

1 comment

  1. skybrian
    (edited )
    From the article: Also: Here’s Why Europe, Desperate for Gas, Isn’t Buying LNG

    From the article:

    Europe has an energy problem, and it could get worse once winter grips the continent. Gas and electricity prices are soaring, windmills are standing idle for lack of wind and shuttered coal-fired power plants are being brought back into use. There are even suggestions to use diesel generators for private generation. But oil isn’t the solution to the continent’s energy woes.

    High natural gas prices are creating incentives for fuel substitution that could boost oil demand, according to Jeff Currie, global head of commodities research at Goldman Sachs. Although that’s true on a global scale, it may not provide much respite for European consumers, who have little scope to switch generators from gas to liquid fuel.

    Here’s Why Europe, Desperate for Gas, Isn’t Buying LNG

    Even though European prices have more than tripled this year, they are yet to beat rates for the liquefied fuel delivered to Asia, the biggest importing region. That’s because countries from Japan to India are panic-buying before the winter, heightening competition for the small fraction of the supply that trades freely in the spot market and isn’t tied to long-term contracts.

    4 votes