LNG: Germany preparing for LNG imports

 With Russia as designated gas provider falling out due to the russian invasion of Ukraine and president Putin's unpredictable behaviour, Germany is carrying out a change in gas import, more precisely turning to US LNG (WELT):

On the high seas, in the middle of the Indian Ocean, the "Minerva Chios" suddenly changed course. The ship came from the USA and was almost there, but then it turned 180 degrees, turning from south-east to north-west. The captain had been assigned a new port. He should no longer head for Asia, as originally planned, but for Rotterdam. Apparently someone in Europe was offering more money for their cargo.

The "Minerva Chios" was loaded with liquid gas or "Liquefied Natural Gas", as it is called in the industry, LNG for short. These three letters have been at the center of world politics since the beginning of the Ukraine crisis. It's about the question of where millions of Europeans should get the raw material with which they heat and operate many of their power plants.

Because Russia, the most important gas supplier for Germany and the entire continent, has made itself an outsider by attacking Ukraine. An unpredictable aggressor who can no longer be trusted. Germany must look for alternatives to Russian natural gas, says Federal Minister of Economics Robert Habeck (Greens), otherwise you will become "a pawn".

LNG: discordance about the export of US LNG

As an appendix to this article,  oilprice.com writes:

Just as U.S. exports of liquefied natural gas (LNG) serves as the main cog in helping keep the lights on and homes heated in Europe in this windless winter, a group of Democratic senators sends a letter to Energy Secretary Jennifer Granholm urging her and the Biden administration to take action to limit U.S. LNG exports.

In their letter, these 10 senators "...urge the Department to conduct a review of LNG exports and their impact on domestic prices and the public interest, and develop a plan to ensure natural gas remains affordable for American households. Until such a plan is completed, the Department should consider halting permit approvals of U.S. LNG export facilities."

There are several problems with this approach. The first is that, as stated above, Europe is in desperate need of U.S. LNG this winter and likely beyond as its wind industry fails to deliver on its promises. Second is the fact that, despite record levels of LNG exports in recent months, U.S. natural gas production continues to enjoy a steady surplus over demand for it. The U.S. price, currently standing at about $4.80 per Mmbtu at the Henry Hub, is not connected to prices for international natural gas, which in Europe is currently selling for upwards of 6 to 7 times the U.S. price.

The U.S. proven resource of natural gas is equal to hundreds of years of current consumption. Shouldn’t we as a nation should celebrate our ability to pitch in a small sliver of what we produce to help avoid a looming humanitarian catastrophe across the European continent? That crisis was brought on by the wrong-headed energy policies adopted by governments who share the general energy outlook of Granholm, Biden, and this group of senators.

You can read the rest of the piece via the below link:

https://oilprice.com/Energy/Natural-Gas/Democrat-Senators-Are-Trying-To-Limit-US-LNG-Exports-For-All-The-Wrong-Reasons.html

LNG: The US are a new player in the european gas game

 In view of the tensions between Russia and Ukraine and the menace of a natural gas cut off from Russia and the increased will of several european countries to turn away from russian gas, us-american companies take the baton as a supplier of LNG to Europe, writes french newspaper Le Monde:

It was December 2021 when it appeared that Russia was amassing its troops on the doorstep of Ukraine. Suddenly, the Minerva Chios, an LNG carrier from Louisiana, turned around, while it was in the middle of the Indian Ocean. Direction Europe, via the Suez Canal, with its cargo of American liquefied natural gas (LNG). It was the same for the Maran Gas Vergina, coming from Delaware, which was approaching the Strait of Malacca: it turned around to unload in Turkey. The Marvel Crane, which was going to use the Panama Canal for Asia, headed for Spain. The Old Continent, so dependent on Russian gas, suddenly became attractive and shipowners diverted their cargoes to the best buyers.

Nord Stream 2: possible legal obstacles after completion

 In a very interesting paper Prof. Alan Riley explains that the contentious pipeline "Nord Stream 2" might not be operational even after constructional completion. The project may face legal counteraction.

Quote:

"However, even if a deal is not possible and Nord Stream 2 is technically completed despite the threat of US sanctions, it is far from clear that the pipeline can enter into operation any time soon. There is the prospect of a significant EU law battle at least over the application of the liberalization provisions of the Gas Directive 2009"

You can read the rest of the piece via the below link:

https://huri.harvard.edu/files/huri/files/riley_-_nord_stream_2.pdf?m=1618864282

Nord Stream 2: Germany's indifference to US positions and the unpleasant surprise of sanctions

 An interesting op-ed piece in the german newspaer "WELT" by Matthew Karnitschnig Chief Europe Correspondent of Politico: 

"If there is one thing that the American president has been extremely adept at since his inauguration in 2016, it is getting under Germany's skin. This is the case with transatlantic trade policy, with defense spending and also with the controversial German-Russian gas project Nord Stream 2.

The latest outburst of anger was triggered in early August by a letter sent by three US senators who supported Trump to the operator of a Baltic port in the constituency of Chancellor Angela Merkel. The senators threatened the port managers with "devastating legal and economic sanctions" if they continued to support the pipeline project by supplying the Russian ships that are building the pipeline.