European Gas Markets Attractive to American Producers as Prices at Record Highs, Ex-US Official Says
"European natural gas markets will continue to be attractive to US producers as prices in Europe are at or near record highs of around $32 per mmBtu [Metric Million British Thermal Unit] in Europe and $30 in Asia versus just about $6 per mmBTu in the US", Terzic said. "Of course US gas needs liquefaction, shipping and gasification costs to be added but that’s in the $4-6 range".
"Today's high European gas prices attract US LNG sales where dwindling Western European gas fields make Russian natural gas the primary source,” Terzic said. “Western European countries will need to determine their level of comfort with increased imports from Russia on Nord Stream 2".
"Future export to China is dependent on China’s policies with respect to replacement of its coal-fired power plants", he noted. "If coal is replaced by natural gas then US exports continue and increase. If China turns aggressively to renewable energy then US gas sales to China fall".