As Europe buys more liquefied natural gas LNG from the United States in response to Russia's energy squeeze, the U.S. finds itself unable to meet domestic and international demand due to spare capacity. TeddyOstrow reports for DW.
Germany is rushing to build its first floating regasification terminal for LNG at WilhelmshafenTo meet Europe's natural gas demand, the US has solidified its spot as the world's largest LNG exporter in the first half of 2022, according to the US Energy Information Administration .
According to Eugene Kim, research director at Wood Mackenzie's Americas Gas research department, the US has emerged as one of the only secure LNG suppliers. Thought to be potential growth areas prior to Russia's invasion of Ukraine, Australia and Western Africa's gas industries have been limited by political and economic conflict.But capacity issues on both sides of the Atlantic are limiting America's ability to play the superhero.
The Freeport explosion will disrupt about one-fifth of the US' natural gas export capacity until late 2022 or early 2023 The existing capacity is largely tied up in long-term contracts with non-European nations, and the next wave of export infrastructure will not come online until 2024 or later. Even then, Kim explained that would not be enough capacity to fuel Europe.
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