Samantha Dart, co-head of global commodities research at Goldman, published a note to clients outlining five key questions and answers about the US-EU liquefied natural gas trade. This comes just days after President-elect Donald Trump threatened the EU with a barrage of tariffs unless Brussels ramped up purchases of American LNG.
For context, last Friday, Trump wrote on Truth Social:
“I told the European Union that they must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!”
Dart told clients that the US is already Europe’s largest LNG supplier and a key source of supply growth. She said replacing Russian LNG with US LNG imports could raise shipping costs and European prices to incentivize re-routing cargoes.
She said such a shift would have minimal impact on US LNG export revenues, as total export capacity remains fixed, adding exporters with long-term contracts with proposed US LNG projects would benefit. However, Europe’s decarbonization strategy may limit the willingness of European companies to make long-term NatGas commitments with US exporters.
Dart laid out key questions and answers about the US-EU LNG trade that help clients understand that US LNG Gulf exports can “theoretically” replace Russian NatGas flowing into the EU. […]
— Read More: www.zerohedge.com
