In The United States has named the price of gas for Europe under long-term contracts, the European Union has increased LNG purchases after the start of a special operation in Ukraine and a reduction in Russian supplies. According to the IEA, in June last year, for the first time, the EU imported more LNG from the United States than pipeline gas from Russia
The United States is ready to supply natural gas to Europe at a price of $12/Mmbtu (Mmbtu— British thermal unit), but for this it is necessary to conclude long-term contracts, the head of the largest gas producer in the United States, Toby Rice, said at a conference in Abu Dhabi.
“We can deliver gas to the threshold of Europe at a price of $12 per Mmbtu (about $380 per thousand cubic meters), and this will mean a gas price in the US of $4 per Mmbtu,” he said, noting that such a price would be a great deal, especially compared to with the current $20 per Mmbtu.
By the end of 2022, the European Union became the main buyer of liquefied natural gas (LNG) in the world, ahead of the previous leaders – China, Japan and South Korea. The European Commission called the United States the most important partner for replacing Russian gas supplies, which have sharply declined amid the confrontation between Russia and the West over the conflict in Ukraine, which, along with Qatar, Australia, and Russia, are the largest LNG producers.
The International Energy Agency pointed out that in June last year, LNG supplies from the United States exceeded Gazprom’s exports to Europe for the first time. In November, the State Department indicated that American companies supply 70% of all their LNG exports to Europe.
Unlike pipeline gas, which is usually supplied under long-term contracts, LNG is more often bought on the stock exchange and gas hubs. In the context of a reduction in Russian supplies and increased demand for LNG, gas prices in Europe last summer reached record levels of $3,000 per 1,000 cubic meters. In December, the EU countries agreed on marginal gas prices in the amount of €180 per megawatt·hour (about $2 thousand for 1 thousand cubic meters).
The cost of the February natural gas futures on the index of the most liquid European TTF hub in the Netherlands at the close of trading on Friday, January 13, amounted to €63 per MWh or about $719 per 1 thousand cubic meters, follows from the ICE exchange data.
Read on RBC Pro The West is preparing sanctions against oil products from Russia. What awaits the economy Besides the dollar and the euro: which currencies to invest in in 2023 What do changes mean in the lists of “black” and “white” countries-jurisdictions 5 trends of financial markets that 2022 has done away with — The Economist Authors Tags Subscribe to RuTube RBC Live broadcasts, videos and recordings of broadcasts on our RuTube channel