Europe Turns to Spot LNG, Faces Risk of Being Outbid by Higher-Priced Buyers in Tight Market

【Europe Turns to Spot LNG, Faces Risk of Being Outbid by Higher-Priced Buyers in Tight Market】

⑴ As Europe rejects Russian pipeline gas sold under long-term contracts, it largely replaces it with spot LNG purchases.

⑵ Consequently, Europe not only concentrates most of its gas imports from a single source but also, during market tightness like the current one, faces the risk of having gas bought away by higher bidders.

⑶ Of course, this is an extremely expensive time to negotiate new long-term contracts.