🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Europe requires greater infrastructure to cut reliance on Russian gas

Published 19/03/2024, 14:08
© Reuters.
XOM
-
NG
-

By Arathy Somasekhar and Georgina McCartney

HOUSTON (Reuters) - Europe will need to come up with more infrastructure if it is to replace Russian gas as thoroughly has it has crude oil, oil and gas executives said at an energy conference on Tuesday.

Europe's pipeline gas imports from Russia have dropped since Moscow's 2022 invasion of Ukraine, and the European Commission has called for nations to end its reliance on Russian fossil fuels by 2027.

But European Union countries have avoided sanctioning or banning imports of Russian gas or its liquefied natural gas (LNG). Some countries including Austria and Hungary remain significant buyers of the Russian fuel.

"Redirecting liquefied natural gas and building regas terminals are not long term solutions, Exxon Mobil (NYSE:XOM) Vice President John Ardill said at the CERAWeek energy conference."

The company has discovered natural gas in the Eastern Mediterranean and expects to begin an exploration drilling program next year, Ardill added.

"The infrastructure has not been there and is still not there. At this stage, Europe really could not cut off LNG," said Gunvor Chairman Torbjörn Törnqvist in separate remarks at the conference.

"Unlike in oil, Europe is a little bit more pragmatic when it comes to receiving Russian gas," Tornqvist said.

Gunvor continues to fulfill its long term contract to supply Russian LNG to Europe, but there is no room for Russian spot market LNG volumes, he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.