US supplies are unlikely to compensate for gas shortages in Europe.
Representatives of the US Liquefied Natural Gas (LNG) Producers Association warned that the EU's gas reserves are currently only at 42% capacity. Meanwhile, the US does not have enough surplus resources to provide aid.
According to the TASS news agency.On June 12, Charlie Riedl, CEO of the US Liquefied Natural Gas (LNG) Producers Association based in Washington, said that US suppliers would struggle to meet energy demands in Ukraine and Europe this coming winter.
Mr. Riedl emphasized that Europe's underground gas reserves are only 42% full. This is a record low reserve level since 2018.
"Normally, Europe's goal is to fill its reserves to about 90% capacity after the stockpiling season. However, analysts believe that achieving 70% would already be a great success," Riedl clarified at a press conference on June 11.
According to the CEO of the American LNG Producers Association, LNG flows from the Gulf through the Strait of Hormuz are being disrupted. This is due to the conflict between the US, Israel, and Iran, which has triggered a serious crisis in the energy market.
"Our plants are struggling to operate beyond their designed capacity. Even so, the global market will still face the risk of supply shortages. The gas shortage is not limited to Europe, but is spreading across Asia. We are completely powerless to compensate for the current drop in production in the Gulf region," said Charlie Riedl.
To put it bluntly, Riedl said that supplying Europe with enough LNG is extremely difficult. The energy market is under immense strain.
In Ukraine, the natural gas storage system is massive. Maximizing the use of this existing infrastructure is a highly logical approach. However, the core bottleneck of the entire system lies in the supply aspect. At present, the United States does not actually have any surplus natural gas to provide as aid.
The Liquefied Natural Gas Producers Association (LNG) of the United States is a prestigious trade organization, officially established in 2000. The association brings together 18 leading LNG producers operating in the US. This list includes major names such as BP, Chevron, ConocoPhillips, and Shell.