RE:Natural Gas - nordstream 2snowshoedb wrote: The only threat I see two natural gas prices going forward before winter is the possibility that when Northstream two starts flowing in October. European gas storage is 60% below where it should be at this time… It's an impossible situation… Europe is in trouble if they have a cold winter.
Does anyone know how quickly Russia could refill those storage facilities when it starts Nordstrearm 2 in October?
Russia also has the ability to ship additional gas through the Ukraine. But I am 100% certain they will not do that unless there is a humanitarian crisis in Europe. The Russians do not want to give any gas transit fees to the Ukrainians. If Russia were able to solve the storage crisis… Then the first casualty will be LNG exports out of the United States. If the LNG volumes drop then the US could eliminate their deficit for storage. But I think it's a little too late.
I'm currently too busy to do the research on how much volume and how quickly they could replace the deficit. I'd be interested if anybody has time to do the research.
It all depends on where Nord ties in to and the distribution from there and where the storage caverns are located. One storage cavern may be full but another part of the EU might be freezing in the dark. I believe it is going in to Germany but I don't think many would know intimate details of the line and one pipeline will not feed all of the EU and, even if it was possible...it isn't....then it would be dumb to have all of your feed from one pipeline. Look what happened to Continental and the effects.
Regardless, Nord will compete with US LNG but more and more markets are opening up and with increasing demand so I doubt that it will make much of a dent at this point.
The sky is blue for awhile I think. Finally.