Russia vs Ukraine: Will it disrupt energy supplies to Latin America?

Source: Econlog
by Michelle Bernier

“In 2021, the imbalance observed in the global Liquefied Natural Gas (LNG) market created high competition for LNG cargo due to a substantial increase in post-pandemic demand. The limited supplies couldn’t meet this demand. Russia ships about 230 million m3 of gas daily to Europe, of which one-third travels westward through Ukraine. In 2021, Russian natural gas accounted for almost 13% of all Russian exports. This was worth about US$62 billion and shows the magnitude of this trade with the other side of the world. While it has been argued that LNG cannot fully replace the Russian pipeline gas supply, LNG’s share of the gas mix in Europe is expected to increase. … An increased supply of U.S. LNG to the European market to cover a possible partial or complete disruption of Russian gas supplies to Europe could decrease U.S. LNG supplies to Latin America.” (05/09/22)