USA displace Russian gas suppliers to the European market

США вытесняют российских поставщиков газа с европейского рынка

The competition for the European market among suppliers of gas escalates, the part of the Russian share market moves to the USA, writes “Kommersant”.

In 2019 the Russian gas suppliers have been able to strengthen its position in Europe total share of “Gazprom” and “NOVATEK” has exceeded 47%. Although in absolute terms, the supply has increased, Russian companies have lost significant market share taken by American suppliers.

The first place on volume of export to Europe of LNG is Qatar, accounting for 29.5 billion cubic meters. Followed by the “Gazprom” and “NOVATEK”, and the third place actively winning company from USA. By the end of 2019, they managed to increase deliveries by 5 times – up to 17.5 cubic meters. Analysts are predicting a continuation of the trend.

“That gas from the US faster than other occupied share in the European market in 2019: prices of LNG in Asia has been very low, which made selling gas to Europe more attractive, given the short transport shoulder. In 2020 this trend will probably continue due to the commissioning of new LNG capacities in the United States,” writes “Kommersant”.

Another factor for increasing competition between LNG and pipeline gas primarily from Russia, is that in 2019 the download of available in Europe LNG receiving terminals was only 48%, and European demand continue to grow.

“In the coming years, Europe will need about 80 billion cubic meters of LNG and, in addition, the consumers can buy 40-50 billion cubic meters depending on the market situation. It is for these volumes will be a battle between “Gazprom” and American suppliers of LNG, as “NOVATEK” in 2020, has no plans to enter significant new capacity”, – quotes the edition of rating analysts.

As he wrote Ruposters previously operators “Northern streams” appealed to Germany for help, asking them to withdraw from the operation of the new gas Directive of the EU.