Yet there are bottlenecks in importing LNG. There are simply not enough regasification facilities on the continent to process all of the LNG imports needed to replace Russian supplies. Concerns about supply have driven up the price of natural gas in Europe. And spiking demand for LNG has caused a shortage of tankers, which has pushed shipping rates for LNG to record levels. Thus there is now a scramble to create new facilities. The quickest way to do that is through floating storage regasification units, or FSRUs. They can be built much more quickly than permanent onshore import terminals. As a result, there is a flurry of FSRU construction going on right now, with some 25 new FSRUs expected to be completed within a couple of years - the first of them by the end of this year. Those 25 FSRUs include five in Germany (plus two onshore LNG import sites), five in Greece, two in the Netherlands, four in Italy and two in Ireland. France, Finland, Estonia, Cyprus and Poland also have plans for new FSRUs. Who's Got Gas? And where will all that LNG come from? Today the United States is the world's largest producer of natural gas. It produced over 934 billion cubic meters in 2021. Even more than Russia, which produced 702 billion cubic meters. In addition, in the first quarter of 2022, the U.S. became the largest exporter of LNG, according to the U.S. Energy Information Administration. So Europe will lean heavily on imports of U.S. LNG. As I wrote above, this is not a temporary shift in energy markets. Europeans were taken by surprise by the Russian invasion of Ukraine. They were terrified to find out how dependent they were on Russian energy. And they've become determined to never again be so vulnerable to the whims of a dictator like Vladimir Putin. That's good news (eventually) for Europeans. And it's great news for U.S. natural gas suppliers and shippers... as well as investors who know which of those companies will best take advantage of it. In fact, Chief Investment Strategist Alexander Green has his sights set on a special opportunity that could make early investors a fortune. He recently sat down with journalist Bob Paff to discuss the company he believes is poised to make shareholders a killing. Tune in to the interview here. Invest wisely, Matt |
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