@Frank_Stones: 🚨🇪🇸Spain is the second country...
@Frank_Stones
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Feb 09, 2024
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🚨🇪🇸Spain is the second country within the🇪🇺EU to suffer the energy security consequences of Houthi attacks to tankers in the Red Sea and the halt to LNG shipments through the Suez Canal.
A🇶🇦Qatar LNG cargo has been delayed by about two weeks as it has to circumnavigate Africa
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A🇶🇦Qatar LNG cargo has been delayed by about two weeks as it has to circumnavigate Africa
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After the cancellation of a Qatari LNG cargo expected in early February at the largest terminal in Italy (🧵below), we have a new problem for LNG shipments to Europe.
Cancellations and delays are different in nature, but they are the consequence of the same worrying developments.
Cancellations and delays are different in nature, but they are the consequence of the same worrying developments.
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This time, QatarEnergy has rerouted an LNG shipment due to the Spanish energy company Endesa, likely to be received at the Barcelona LNG terminal, by 12 days and now expected for late February.
Spanish gas storages are at more than 80%, a pretty reassuring level.
Spanish gas storages are at more than 80%, a pretty reassuring level.
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Luckily, this winter has been warm in the Iberian peninsula. Despite cold snaps hitting Europe in early December and a longer one earlier in January, Spain and Portugal have been able to maximise positive renewables output and limit gas consumption.
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Spain is the country with the largest LNG import capacity among European Member States and Madrid has been promoting the Iberian Peninsula as a possible gas hub for the entire Europe.
Yet, the Spanish gas grid has exclusively a limited connection with the French grid.
Yet, the Spanish gas grid has exclusively a limited connection with the French grid.
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Nevertheless, the delay announcement is telling of a worsening situation in the Red Sea and calls EU governments and US and UK allies to question how to deter Houthi's attacks and restore the LNG transit through Suez.
Despite Western naval forces deployed in the area and repeated
Despite Western naval forces deployed in the area and repeated
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strikes against Houthi armaments, the rebel group has been able to hit a tanker managed by Trafigura and carrying Russian naphtha.
This indicates that no ship has a safe passage through the Red Sea until Israel stops its war in Gaza. At least, this is what the Houthi say...
This indicates that no ship has a safe passage through the Red Sea until Israel stops its war in Gaza. At least, this is what the Houthi say...
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Speaking of the rising tensions in the Middle East,🇮🇷Iranian IRGC have seized a foreign tanker and crew in the Strait of Hormuz with 1 million litres of fuel.
Also, 3🇺🇸US soldiers have been killed and 34 wounded in a drone attack near🇯🇴Jordanian border with🇸🇾Syria.
Also, 3🇺🇸US soldiers have been killed and 34 wounded in a drone attack near🇯🇴Jordanian border with🇸🇾Syria.
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The🇺🇸US blames🇮🇷Iran-backed militia and will likely retaliate.
Over the short-term, the delays of Qatari LNG shipments to Europe are not a major concern.
But a prolonged phase of delays or cargo cancellations is destined to impact both the EU energy security and also
Over the short-term, the delays of Qatari LNG shipments to Europe are not a major concern.
But a prolonged phase of delays or cargo cancellations is destined to impact both the EU energy security and also
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Qatar's export strategy.
Today, QatarEnergy has signed a 15-year agreement to supply 1 mt/y of LNG to 🇧🇩Bangladesh, starting from 2026.
Without Suez available, keeping up with LNG exports to Europe is much costlier for Qatar, while Asian markets are just around the corner...
Today, QatarEnergy has signed a 15-year agreement to supply 1 mt/y of LNG to 🇧🇩Bangladesh, starting from 2026.
Without Suez available, keeping up with LNG exports to Europe is much costlier for Qatar, while Asian markets are just around the corner...