I like the idea of North Stream 2. It will deliver even more pipeline gas into Europe that can be used in order to give LNG flexibility. Understand – Europe can afford to take or release contracted volumes if the market pays a premium and it can cover its own gas needs through enough pipeline capacity. NS2 will add to that. Great. But NS2 does not come cheap. People like to forget that NS2 is quite expensive already but also that there is a huge pipeline system that comes before NS2 and brings gas from the most expensively developed Russian gas field thousands of miles through the tundra to NS2. If I had to guess I would be quite confident that US LNG is cheaper at delivery already now.
Russian energy minister Alexander Novak this week accused the U.S. of turning liquefied natural gas into a weapon in an attempt to upend Moscow’s economic ties to Western Europe, Kallanish Energy learns.