1/ EU's dependency on Russia's gas is still significant.
Russia is the largest supplier of gas to Europe. w/@BHilgenstockIIF
2/ Even if LNG imports have increased sharply
3/ There is limited availability of additional LNG on the market. Global liquefication capacity is almost fully used up and LNG vessels are in very high demand. LNG is sold and acquired largely via long-term contracts.
4/ European buyers would compete for a relatively small share of the market. Finally, additional demand, which represents roughly 20% of the existing global LNG market, would put strong upward pressure on prices.
5/ The overall capacity of LNG terminals in Europe is sufficient.
6/ LNG terminals are unevenly distributed, there will also be issues with the distribution of gas with Europe.
7/ Gas storage levels in Europe at record lows (gas experts of course will correct that there are a lot technicalities around this with monthly data, weather, and seasonality).
8/ Do not forget, Russia is also an important player in the LNG market.
9/ The fact that NS2 is on hold, makes it harder to cut out Ukraine from gas transit in the future. As of now, gas transit is at historical lows.
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