Europe’s vast network of liquefied natural gas terminals can’t save it from a winter supply crunch.
LNG supplies entering European grids in July fell to the lowest for that month in three years and the outlook for this month is even grimmer. Just one cargo is scheduled to arrive in the U.K. in August and traders who have the fuel stored in Spain are set to export six cargoes to capture higher prices in Asia.
All of that comes as Russia has been flowing less gas to Europe, setting the continent up for a very difficult winter should freezing temperatures hit. With inventories at their lowest level in more than a decade, gas prices in Europe have been volatile. Records have been broken day after day, with the market on edge for updates on new supply that will come through the yet-to-be completed Nord Stream 2 pipeline linking Russia and Germany.