“Europe is and will continue to buy LNG.”
Depends. The typical European household is stretched to the breaking point financially.
Asian spot LNG prices are running around US$18 per million British thermal units (mmBtu), while European LNG cargoes go for around US$10 per mmBtu.
Europeans can’t match that price without families being swamped by energy costs that they can’t afford. The tariff choices offered to households are more limited. The consensus is that UK consumers will pay, on average, about £140 more this season. The typical household energy cost in the UK is £1,350 annually.
If 10% of UK households are priced out of the energy market due to higher costs, I believe that the UK elitists will have a major revolt on their hands.
We shall see, no?
That average price includes long term contacts.
Would you care to make a bet against Europe buying LNG next mont, in 6 months, or a year from now?
That price differential has existed for some time now.