Europe heading for huge excess LNG import capacity, experts warn

Yes, thats very likely the case. In situations of emergency, decision-makers tend to overreact just to show that they are doing something. Also, the market is deeply changing so it’s very hard to estimate what the true demand picture will be in a year – or 5. As a cherry on top, once the war is over it’s very likely that Russia will sell gas to Europe again. As much as it can in fact and Europe will buy. Yes, there will be overcapacity. But this might be a blessing in disguise as overcapacity in combination with deep gas storage might allow Europe to fulfill its natural role in LNG. To be a market maker. 

Linkedin Thread