Europe's efforts to wean itself of Russian gas in the wake of the invasion of Ukraine are likely to 'unleash' of a wave of investment in so-called freedom gas from the United States, observers say.
when gas was trading at more than $US40 per million metric British thermal units compared with a historical average of about $US5 an MMBtu.He said even though Europe may be able to scrape through the tail end of winter without Russian gas, the continent would struggle in the absence of those supplies next winter.
"Historically, we used to have Continent prices of $US5 to $US7 , and these were lower than Asian LNG prices," Mr Hanna said."The diversification away results in an increase in price because LNG and spot prices become more of the mix, and that, on average, increases the price. "However, it plays out from here, even if we don't see any material disruption in gas flows beyond where we are, this has potentially provided a real shock to gas buyers, not just in Europe but globally," Mr Kavonic said.
More likely, he said, was a combination of measures including boosted LNG imports, new pipelines to places including the eastern Mediterranean and the Norwegian Arctic and a reduction in the use of gas.
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