Liquefied Natural Gas a game changer for those previously dependent on Russian gas

Wall Street Journal:
An integrated market improves energy security by reducing the leverage of dominant pipeline gas suppliers, helping Europe implement its Energy Union package goals to reduce vulnerability to Russian gas dependence through market integration, interconnectivity and diversification. Just before Lithuania started operating its LNG import terminal, aptly named “Independence,” it negotiated a more than 20% discount off its gas bill from Gazprom. Poland’s new LNG terminal will allow it to achieve its strategic objective to replace Russian gas imports with alternatives. And growing competition from LNG helped encourage Gazprom to settle the EU Commission’s long-running antitrust case against the company.

Moreover, increased LNG supply enables gas to respond to changing market conditions more easily, such as Japan’s demand surge following the Fukushima disaster, enhancing energy security through more interconnected markets. It is also encouraging the emergence of an integrated global gas market. U.S. LNG, which can be sold anywhere in the world at market-based spot prices, will accelerate this trend. Just over one year after the first exports of LNG from the lower-48 states, most of the shipments have gone to Latin America, not Asia as had been expected, as changing market conditions rather than geopolitics determine where the gas is sold. The Trump administration recently reinforced this dynamic by reassuring China it could sign gas deals with the U.S.
This is something that Energy Secretary Rick Perry has been talking about back when he was still governor of Texas.  The anti-energy left and its keep it in the ground attitude about fossil fuels has been unwittingly aiding Russia and OPEC with a predatory pricing regime imposed by their previous market dominance.


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