• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 16 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

NATO Worries About Europe's Gas Supply Strategy

Amid ongoing tension between NATO and Russia around Ukraine, the head of the treaty organization Jens Stoltenberg has expressed concern about Europe's dependence on Russian gas.

"We are concerned about the energy situation in Europe because it demonstrates the vulnerability of being too dependent on one supplier of natural gas and that's the reason why NATO allies agree that we need to work and focus on diversification of supplies," Stoltenberg said on Sunday, as quoted by Reuters.

Russia's Gazprom supplies about a third of Europe's gas, with Western Europe and Turkey accounting for 78 percent of the state major's exports in 2020 and Central Europe accounting for 22 percent, according to Gazprom data.

In a bid to reduce this dependence—and get its European partners to agree to tougher sanctions on Russia—Washington scheduled talks with Qatar on alternative gas supplies. The talks are taking place today, but chances that Qatar can replace Russia as gas supplier are slim, at best. Per a recent Bloomberg report, the emirate is already pumping at capacity, and most of its gas is sold via long-term contracts in Asia.

U.S. natural gas is, alas, not really an option. Like Qatari gas, there are other buyers ahead of Europe in the queue, and the Europeans themselves are not really willing to pay the premium for U.S. LNG. There is also the issue of import capacity, which is still rather limited in the Old World.

Even Germany, the biggest buyer of Russian gas in Europe, does not have an LNG import terminal. Utility major Uniper planned to build one in Wilhelmshaven but in 2022 abandoned these plans in favor of a green hydrogen hub.

Meanwhile, the Ukrainian situation is at the stage of a standoff, with both sides unwilling to make concessions to each other's demands.

By Irina Slav for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • George Doolittle on January 31 2022 said:
    The entire World is being consumed by a massive energy crisis all of which has to do in effect with the passing of "bad cheques" between Governments ("Global Weimar") which oddly seems to be solved by "Bitcoin" in some way ("transactional friction"?)

    Anyhow there is no food or energy crisis upon this entire Earth other than in Distribution.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News