Europe’s LNG Tango: A Love-Hate Relationship with Reality.
The European Union, ever the conflicted protagonist in its own energy saga, is gearing up to throw its weight around in the global LNG market—again. A leaked draft from the European Commission suggests Brussels will “immediately engage” with LNG suppliers to stabilize energy prices, all while still pretending it’s on track to kiss fossil fuels goodbye by 2050. The cognitive dissonance is almost admirable.
At issue is Europe’s chronic dependence on imported gas. Having sworn off Russian pipeline supplies (at least officially), the bloc now finds itself tethered to liquefied natural gas imports—primarily from the U.S., which it may soon be paying even more for if Donald Trump follows through on tariff threats. Meanwhile, Russia remains Europe’s second-largest LNG supplier, because, well, energy security is a funny thing when reality checks your moral grandstanding.
Meanwhile, natural gas prices have jumped to nearly $4/MMBtu, and power prices across Europe remain tethered to gas market volatility. The EU’s latest plan also includes joint LNG purchasing, an attempt at leveraging collective buying power to force lower prices. But as past attempts have shown, pooling desperation doesn’t necessarily translate to bargaining strength.
Source: OILPRICE
