And while LNG exports will not give the U.S. more geopolitical power in Europe per se (given the increasingly competitive global LNG market), Russia’s loss in this regard is a strategic gain for the U.S. As reported by Eurogas, going forward Europe will need to import much more natural gas than suggested by demand growth alone (Figure 1). European Diversification and What It Means to Different PartiesNatural gas market diversification has become a hot topic in Europe following several breaks in Russian gas deliveries between 2005 and 2009. In addition, many CEE countries may be willing to pay a certain security premium for LNG to sustain diversification efforts away from Russian natural gas. If non-Russian supplies of natural gas are readily available, Gazprom loses ability to charge monopoly prices.

Source: Forbes July 11, 2017 06:33 UTC