Ain’t that funny? Just 2 years ago, Gazprom told everyone who would listen that US LNG was not even a factor when it came to its competitive position in Europe as US LNG would be so darn expensive. Now they are their number one competitor. How things change. The going gets even tougher for Gazprom as it has no alternatives to Europe for its gas whereas the US sellers can arbitrate and use the European market as a sink for volumes they can’t sell for more in Asia. Europe is a security option for them and guess who pays for delivering this safety net to the Americans. Yes, its Gazprom with its massive deliveries into the continent. If there ever was a catch 22, Gazprom is in one right now.
U.S. exports of liquefied natural gas (LNG) to Europe will be the main competition for Gazprom this year, the Russian gas giant said on Thursday in an abrupt change of tone toward gas supplies from the United States.