The import of liquefied natural gas (LNG) into Europe may fall this year by some 13 billion cubic meters (bcm), while Russia's exports of pipeline gas to Europe may bounce back, the Oxford Institute for Energy Studies (OIES) said in a report on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 20th January, 2021) The import of liquefied natural gas (LNG) into Europe may fall this year by some 13 billion cubic meters (bcm), while Russia's exports of pipeline gas to Europe may bounce back, the Oxford Institute for Energy Studies (OIES) said in a report on Wednesday.
The German Der Spiegiel weekly earlier in the week raised concerns over the possible environmental impact of LNG cargoes being shipped to Europe, arguing that the pipeline gas, delivered to Europe by Russia and other producers, might in reality have a lesser carbon footprint than LNG.
"Our projections suggest that LNG imports into Europe could fall by some 13 bcm, limiting the global rise in LNG imports to some 10 bcm - a rise of only 2 percent. With LNG export capacity continuing to rise, this suggests another summer of LNG cargoes being shut in. Our modeling suggests that pipeline imports will partially bounce back, especially from Russia. With increased withdrawals from storage, this squeezes LNG imports," the institute said in its Quarterly Gas Review.
At the same time, as there are concerns that the LNG cargoes may not be as "carbon neutral" as they are being portrayed by the producers, the LNG industry should develop measurement and reporting systems for greenhouse gas (GHG) emissions, associated with the production and delivery of such cargoes, according to the institute.
"The LNG industry must therefore develop the necessary measurement and reporting systems for GHG for each cargo. There has been some discussion in industry forums about using generic GHG emissions figures in the absence of detailed data, arguing this would be the first stage towards more accurate measurement. It is unlikely this will be acceptable to policymakers and environmental stakeholders," the OIES underlined.
As the United States has long been trying to undermine and put sanctions on the Nord Stream 2 pipeline, which would deliver more gas from Russia to the European countries, the Russian authorities have responded by saying that the US is trying to lobby its own LNG deliveries to Europe.