Contextualising how US gas can help Europe: The MUFG Global Markets Podcast

The US administration is finalising plans with the European Union to support the continent's access to incremental US liquefied natural gas (LNG) supply in an effort aimed at slashing Europe’s dependence on Russian energy.

Whilst the full details have yet to be announced, Ehsan Khoman, Head of Emerging Markets Research (EMEA), discusses why the near-term considerations are likely to focus on a reallocation of supply to Europe, rather than volumetric increases in total US LNG exports given that US terminals are already running at capacity.

Listen in to this week’s podcast as he discusses why for Europe, this increased US LNG intake would raise summer supply at the margin which will help to take European storage to comfortable levels ahead of next winter, unless Russian inflows fall further with renewed risks surrounding the proposed shift to Russian Roubles (RUB) payments that may lead to a fall in EU termed gas purchases.

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