Biden’s promise of additional US gas to Europe is unrealistic –

Biden’s promise of additional US gas to Europe is unrealistic –

Active LNG terminals are located around the tellurium zone. These run at maximum capacity and expansion is not possible without new terminals. Three quarters of the export goes across the Atlantic to Europe and the rest to Asia.

According to Charif Souki, CEO of Tellurian, the Asian market could play an important role in delivering on Biden’s promise. “It is clear that Asian markets can voluntarily transfer their shares to Europe, but this is highly unlikely as they need them and long-term contracts are signed.”

According to Souki, the most obvious option is for Europe to buy the Asian side, but that comes with a price. “If there’s one thing I know, it’s that the market sets the price. When something becomes scarce, the price skyrockets.” The question is whether Europe will soon be ready to put that price on Asia.

Work together on long-term planning

America wants to increase its LNG exports quickly, but this will certainly take years due to negotiations and regulations. Despite this struggle, Souki sees a market where trust reigns. The West’s rapid transition to LNG and increasing demand in the future demonstrate that multibillion-dollar investment in the market is worth it. “If America and Europe work together on good long-term planning, much more is possible in the future than now,” says Souki.

In suspense, Tellurian’s Keith Teague points out and explains exactly where the storage silos will be, where the boats will dock, and what the terminal will look like. “Every year, more than 26 million tons of LNG have to be exported here.”

With the advent of environmentally damaging hydraulic fracturing, LNG facilities emerged in Louisiana and many construction plans were announced for the coming years. In order to be able to respond more quickly to this need, the Marshall energy plan is being discussed. Teague: “Then the US and European governments will actively intervene in the construction of the terminals.”

America will jump to the top of the list of the world’s largest LNG exporters this year, with only Qatar and Australia currently exporting more.

Source: NOS