LNG Insufficient After Russia Halts Gas, LNG Intelligence Says

By Dinakar Sethuraman

Jan. 15 (Bloomberg) -- Liquefied natural gas supplies are insufficient to meet demand in Europe as Russia halts gas shipments via Ukraine, LNG Intelligence said, citing Jean-Marc Hosanski, a senior vice president at Total SA’s LNG business.

Russia delivers about 120 billion cubic meters of gas a year to Europe through Ukraine, which is equivalent to about 120 LNG cargoes a month, the trade daily said. Europe imported 53 billion cubic meters of LNG in 2007, equivalent to about 23 percent of the LNG traded globally that year.

Europe may have to import four cargoes every day to compensate for the decline in Russian supplies, the report said. About 10 cargoes to 15 cargoes a month, or about 10 percent of the Russian supply gap, may be sourced from the spot market by diverting shipments earmarked for the U.S., the report said.

To contact the reporter on this story: Dinakar Sethuraman at dinakar@bloomberg.net.