Lithuania

Two of the biggest challenges that Europe faces in the race to wean itself off Russian natural gas are the need to develop new pipeline connections between the continent’s many isolated gas networks and to integrate the European Union’s multiple gas markets. Addressing these won’t be easy. Unlike the U.S., whose pipeline systems were designed to transport gas long distances and across jurisdictional lines, Europe’s networks are more regional or even local in nature, and only recently has the EU been taking steps to link the continent’s markets. Oh, by the way, U.S. producers and LNG exporters should care about all this, because if Europe gets its act together, it could become an even larger and longer-term recipient of gas originating from the Permian, Haynesville, Marcellus/Utica and other shale plays. In today’s RBN blog, we discuss the prospects for tying together the EU’s gas pipelines, gas storage facilities, LNG import terminals and gas markets.

The Russian war against Ukraine has focused Europe on the issue of energy security, especially as it relates to natural gas. The continent has previously relied on Russia for more than 40% of its gas, but it now must scramble for new suppliers and alternative forms of energy. The matter is particularly urgent in a few countries along or very near the Russian border, including Lithuania, Poland and Ukraine itself. Fortunately, almost two years ago the three countries formed the “Lublin Triangle,” an alliance of sorts with the aim of enhancing military, cultural and economic cooperation while also supporting Ukraine’s prospective integration into the European Union and NATO. In today’s RBN blog, we discuss the potential for developing a “New Gas Order” in Europe.

Russia is a major producer — and exporter — of crude oil and natural gas, and a major exporter of refined products to boot. So it’s important to keep an eye on what’s going on in Russia, because as U.S. producers and refiners know all too well, what happens halfway around the world often has ripple effects in places like the Permian, the Houston Ship Channel and the Sabine Pass LNG terminal. Today, we discuss Russian crude production and refinery output, its compliance with the OPEC/NOPEC agreement to rein in crude production, and the country’s efforts to steer more of its crude and refined-products exports to Russian ports.  This blog is based on the latest FSU Monthly report from our friends at FGE – Facts Global Energy.