Dr Carole Nakhle, CEO of Crystol Energy, is quoted in this BBC News article, commenting on the evolvement of the LNG market and explaining why Europe cannot take more LNG to replace Russian gas entirely.
Before LNG, gas could only be distributed through pipelines, and that put a limit on where it could be sold. In contrast, LNG can be transported across oceans, and so it can get to many more destinations.
Following Russia’s invasion of Ukraine, Europe increased purchases of LNG to replace Russian gas, but the continent has reached the limits of how much LNG it can take. While countries, such as Germany and the Netherlands, have tried to solve this problem by hiring floating terminals to store and convert the gas, these are small scale and they cannot process large quantities of LNG quickly. Because of that, queues of ships are building up.
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“Energy Crisis in Europe: Causes and Remedies“, Dr Carole Nakhle, Nov 2022