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by imnotlost
1333 days ago
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The headline should be that Europe as 0 storage capacity so people will pay to get rid of the natgas (someone else should store it). This is a temporary problem and does not mean the natgas issues are solved for the winter. There was a similar issue with oil storage in April 2020[1] [1] https://www.nytimes.com/2020/04/20/business/oil-prices.html |
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It needs to be held in special LNG carrier ships that can keep it not only at the right pressure, but the right temperature (against vast fluctuations). The crew on this ship requires special training and the ships carry a different insurance profile.
This is not like oil which is essentially held at room temperature in a water tight vessel.
Therefore just having LNG in a ship takes a considerable number of resources even if it's just sitting there. Crew and insurance has to be paid, refrigeration and ship costs add up, as well as the opportunity cost.
As you can imagine, getting the LNG that you very expensively purchased in the US, shipped, and then brought to Europe, is quite important. Every day delayed this becomes money that is not just being incinerated, but also not being maid.
What we are witnessing now is supply destruction, and as much as the ignorant journalists at CNN may celebrate it, this is actually quite bad long-term for Europe.
Coincidentally, the only other thing that is likely to be more expensive to ship is what Canada's Trudeau has promised Germany it will send: hydrogen. Thankfully that is likely to never happen as the promise was as limp-wristed as it gets.