Ukraine Crisis May Boost LNG Prices If Gas Supply Threatened
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A disruption of natural gas supplies to Europe by an escalation of Russia’s military action in Ukraine may boost LNG demand and prices in Asia and South America, according to Societe Generale SA and Morgan Stanley.
Russia, which provides Europe with more than a quarter of its natural gas mainly though Ukraine, has cut supplies twice since 2006. While the current crisis hasn’t interrupted exports, liquefied natural gas prices will “move through the roof” if flows transiting Ukraine are stopped, said Thierry Bros, an analyst at Societe Generale in Paris.