on new liquefied natural gas exports, warning that the pause could dampen industrial activity, force factory closures, and erode trust between leaders in Brussels and Washington.
Without another supplier to fill this void, the cessation of Russian supplies would deepen Europe’s need for additional U.S. gas, which leaders fear may not be available to them depending on the length of the pause. The worry is that a lengthy pause could keep U.S. export terminals from being constructed in time, leaving Europe vulnerable at a time when demand growth from other parts of the world, such as Asia, is also expected to increase.
European countries also began to invest heavily in new LNG projects in the U.S., as well as regasification terminals, storage units, and other infrastructure needed to import volumes of the chilled gas. The 50 bcm in U.S. supply also appears to be at odds with Europe’s expected gas consumption by the end of the decade, which the IEEFA forecasts will be at roughly 400 bcm.
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