The gas conflict between Europe and Asia may worsen, writes the Financial Times.
For a long time, Asian countries were the main importers of liquefied natural gas (LNG). In particular, South Korea, China and Japan. Now they are competing with European countries, where there is a critical shortage of blue fuel against the backdrop of limited Russian supplies via SP-1, reporters from the Financial Times note.
“We are seeing some struggle to secure LNG supplies until the end of 2022 and into 2023. This hasn’t affected pricing as much yet, but it will happen later, because belated buyers will put pressure on prices,” said the chief executive of one of the Asian gas companies.
“I think that this year and the first quarter of next year we will see constant competition from (Europe and Asia. — Approx. Financial Times) in the market,” said Toby Kopson, head of trading and advisory at Trident LNG.
The basic cost of gas for European countries is higher than for long-time Asian buyers, so trading companies can cancel contracts with Asia, pay penalties and still profit from selling fuel to Europe.