U.S. LNG Won’t Replace Russian Gas as Europe Seeks Supply

U.S. exports of liquefied natural gas won’t be able to replace Russian exports to Europe as the Ukrainian crisis threatens to disrupt flows to the region.

U.S. LNG supplies expected to start in the first quarter of 2016 won’t be enough to compensate for Russian supplies that meet about 30 percent of Europe’s gas needs, said Jean Abiteboul, president of Cheniere Supply & Marketing Inc. U.S. LNG exports won’t have any bearing in the current conflict and deliveries will likely target higher-price markets in Asia, said Will Pearson, director for global energy and natural resources at consultant Eurasia Group.