Allowing LNG to boost liquidity

New European terminals can play a vital role in an era of pipeline gas decline, but only if they provide genuine flexibility for all

Covid-19’s first wave showed exactly how integrated LNG has become into the liquid gas hubs of northwest Europe. When Asia started to cancel cargos as national lockdowns crushed demand, these volumes were rerouted to Europe, where they served to ‘top up’ US exports also delivering into LNG’s market of last resort. The resultant oversupply sent strong bearish price signals. But, as the benchmark TTF price plunged by early June, the US cancelled a swathe of cargos, supply was curtailed and—as demand recovered—TTF surged by over 60pc over the last few months. “With LNG import capacity increasing Europe’s supply options, the gas market in an ‘Energy Union’ case can build up its resilience to sup