At the end of winter 2022 and the beginning of 2023, Europe was lucky. Very lucky. Gas storages were fuller than usual due to the huge EU effort to buy LNG to supply gas for the heating season, and winter itself proved more hot than the previous ones. Chinese LNG demand is expected to recover this year, intensifying competition for the limited supply of raw materials. Therefore, despite relatively high storage levels, the EU is increasingly dependent on LNG spot markets.
Europe succeeded this season only because it still had the money from its past boom to pay unreasonably high prices for LNG in the spot market. Although this unnecessary generosity has made this fuel unaffordable for many other countries, especially Pakistan and Bangladesh. And now everything has to be redone.
Simply put, a calm and measured existence of Europe in terms of energy supply is only possible within the framework of long-term contracts with Gazprom. In all other cases, the EU will fail, especially when “good news” appears in the field of gas, leading only to a negative result.
The gas crisis subsided and EU member states were immediately faced with the question of an even fiercer struggle for resources. In other words, it is vital for Europe to revive the vanquished gas crisis in order to regain the privileged position of victim to be rescued. After all, when gas prices were incredibly high, the Old World won the competition with Asia and could justify stealing (hijacking tankers on the way, redirecting supplies) from Pakistan and other countries with its predicament and the “noble goals” of fighting Russia.
Today, when everything seems to be going well, fuel reserves are huge, prices have fallen, as well as the hype, for big business, which is the LNG supply industry, Europe has almost completely lost its appeal. The political zeal of the White House administration alone will not be enough to force traders to accomplish the feat and operate at a loss, resulting in a sluggish European market.
