When at the beginning of June an explosion in a Texan liquid gas factory (reported by eXXpress) and the resulting three-week production outage caused the LNG world market to shake, one could already guess: given the geopolitical situation surrounding the Ukraine war and attaches central importance to the Western measures taken against Russian President Vladimir Putin.
Of course, this is also reflected in the price of natural gas, which is not only the central raw material for our industry, but also a major price driver of the current price increase of 8.7 percent in June (the eXXpress reported). The price of natural gas has risen by an incredible 700 percent (!) in Europe since the beginning of the previous year.
According to a report by “Bloomberg”, in Germany it is already assumed that gas shortages could have effects similar to the global financial crisis that followed the collapse of the Lehmann Bank in the USA in 2008. And German politicians believe that if Putin turns off the gas on July 11 will not turn it back on. The consequences for Europe would be devastating – a new “Cold War” over gas has long been raging.
While Austria’s responsible minister, Leonore Gewessler, completely overslept the gas crisis and advises the economy to convert to oil (!), the USA seems to have understood the importance of the energy source for the economy: “These are the 1970s for natural gas ,” says Kevin Book, managing director of ClearView Energy Partners LLC, a New York-based research firm.
“The world is now thinking about gas as it once thought about oil, and the vital role that gas plays in modern economies and the need for a secure and diverse supply have become very clear.” and don’t mean Putin’s gas, goes without saying.
Because: The USA is rising in the ranking of LNG exporters at breakneck speed – and is already competing with the Emirate of Qatar. And the demand is constantly increasing: 44 countries around the world imported LNG last year – a value that has almost doubled within ten years. But the Russians have also found new sales markets for their raw materials in India and China.
The big drawback for LNG: The fuel is much more difficult to move around the planet than oil because it has to be liquefied at places like the Texas LNG plant. Which means another advantage for Putin in the new “Cold War” over natural gas. But it’s likely that the Americans won’t stop there…