Does anyone understand that more pipeline gas into Europe is a good thing for LNG? Europe is the quintessential flexibility option for the world LNG market. It can swallow LNG at times when the market is oversupplied and can release LNG into the market when the world needs it. It allows those who have over-contracted for their less flexible market to dump excess at short notice. Only North Western Europe can do this. Watch all those reloadings happening there. In order to be able to do so, Europe needs a healthy supply of pipeline gas and it has that supply. More pipeline gas means more counterbalance which also means that there is less commercial pressure to “get or not get” the LNG. If Europe is smart it can make a healthy margin on providing flexibility to the LNG world.
Overcoming differences between Paris and Berlin, EU diplomats reached a deal on the pipeline, placing stricter regulations on the project. France said it wanted to “ensure European control” of its own energy needs.