Europe Can’t Count on US Gas to Counter Growing Supply Deficit from Russia Next Year: BloombergNEF

Pipe systems and shut-off devices at the gas receiving station of the Nord Stream 1 Baltic Sea pipeline and the transfer station of the OPAL long-distance gas pipeline in Lubmin, Germany, on June 21, 2022. AP/Stefan Sauer

Europe has been able to fill its storage tanks and maintain an adequate capacity for the moment. Disruption of flow from Russia, however, will offset the current supply from the United States and lead to significant inventory deficits in 2023.

According to Bloomberg analysis, there are two issues pertaining to U.S. supplies. One is the limited amount of supply, which is not expected to grow much in the next few years. Second, the fact that energy majors and traders have secured most of the country’s exports of liquefied natural gas (LNG) and largely locked in future supplies. This means they can sell the supplies to whoever pays the highest, which could mean China, as the nation rises from COVID-19 lockdowns and economic restrictions.