Europe's position in the global LNG supply picture
European Gas Conference gathers LNG experts in Vienna
According to the chairman of the LNG Focus Day, Independent Consultant David Ledesma, LNG imports into Europe represent an important source of flexible gas, giving gas supply diversity from Europe's traditional pipeline gas suppliers.'' He says: "LNG gives flexibility of supply and enables buyers and traders to arbitrage cargoes between different regions globally. Asia, as a firm buyer of LNG will usually be able to outbid Europe for short-term cargoes, thus reducing LNG's role as a secure gas supply source in the hub based markets of North-West Europe.''
Too much LNG or not enough?
A question that often comes up in industry discussions is whether there is too much LNG or not enough? According to Ledesma the LNG market will be balanced, "what changes is the amount of available LNG that is being marketed at any one time''. He explains: "due to the low number of new LNG projects being sanctioned during the period 2008-2010, and delays in the construction of new LNG projects (especially in Australia) new LNG supply will be limited over the coming years and this will constrain the volume of un-contracted LNG available for the flexible markets of north-west Europe. If new projects are sanctioned over the coming years, this position should ease in 2018.''