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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (497464)	8/25/2022 1:41:48 PM
From: Elroy Jetson	2 Recommendations Recommended By Sam stsimon Read Replies (2) \| Respond to of 542152

While European LNG imports are now larger than Russian pipeline imports, Putin has created a gas shortage in Europe by cutting the supply faster than it can be replaced with additional LNG - but I doubt that lasts even a year. Because Europe has bid up the price of available LNG, prices will remain higher than normal for a couple of years until enough LNG plants come online. They're currently competing for limited LNG production with Japan, China, and others. . Ultimately the LNG process adds perhaps $1.50 per mmBTU, which is significant when the price is low around $3 but with the current price in Europe being $34.35 per mmBTU, a $1.50 added cost is a nothing to pay for independence from Russia. The LNG draw, and pipeline companies building storage, has pushed the US price of piped natural gas (Henry Hub) up to $9.31 which you can see below is higher than normal but certainly not $34 like in Europe. Putin is creating a temporary fuss for everyone else, but a lasting catastrophe for Russia.