GLE: LNG could be solution to Russian gas cuts

GLE, European LNG terminal operator’s group, said unused LNG capacity could play a major role in case of Russian gas flow disruption. 

Ukraine crisis caused concerns in Europe over a possible gas supply cuts from Russia during the coming winter, but LNG importers could step play a major role in solving this issue, reports Reuters.

GLE President Wim Groenendijk said that in case of disruptions, LNG could certainly contribute to the solution of that problem. He added that Europe has enough LNG import capacity to meet over a third of its annual demand.

Speaking at the Platts 2014 European Gas Summit, Groenendijk said that LNG could be brought to terminals closest to the affected markets.

Balkan countries that are almost entirely dependant on Russian gas could be served by transporting LNG from underused terminals in Spain to Italy or Greece, even though bringing LNG to the most affected regions is heavily influenced by lack of infrastructure.

Another issue are the spot prices that would have to almost double to make LNG shipments to Europe attractive for producers such as Qatar, according to Groenendijk.

LNG World News Staff, October 1, 2014; Image: Enagas