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00:00Are these LNG cargos being deployed. Is that going to be enough to make any dent in the energy crisis in Europe. Thanks for having me. The trend is definitely towards more LNG cargoes heading to Europe dismounts and next months we see gas. We stay above 8 million tonnes of LNG heading to Europe between the last week of December and the next three weeks. It's great news. It's the outcome of the impacts on pricing and whether it would be enough. It's going to depend also on the weather. And guess Frum's moves in the coming weeks. What are you expecting from Gazprom in the coming weeks. That is that is the big question aside along with the weather. So let's let's talk about the Gazprom issue first. The IEA out today the IEA chief talking about the fact that maybe Russia has exacerbated Europe's winter gas crisis. Do you think that we are going to see any shift in the policy when it comes to Gazprom. So that's the trillion dollar question you see. Well it's Gazprom has been unpredictable and that's what has agitated the markets. So all the potential signals I guess from could have agitated the level of gas storage underground gas storage in Europe. The timing of the refilling of the storage you name it. And announcements from the Kremlin. You may remember in October that Vladimir Putin had made an announcement that he would stabilize the market. That didn't happen. But each time we see an announcement from Gazprom of the Kremlin we see a drop or rise in tears. Yes. And that basically confirms that Gazprom the Kremlin has still an outsized role in Europe gas markets. They can depending on their moves it can influence the pricing the level of storage of fuel switching. And they have been playing with those signals and traders. Yes. How do you know how much of it is Russia can't fill the pipelines. Gazprom can't fill it because of its own needs and supply issues versus they are using it as a political tool. So there are not much independent sources in terms of the availability of production and inside the Kremlin they have their own domestic gas in it of course. But what we've seen is that they've had no issue fulfilling their long term contracts. The EU has been in them limiting the amount of gas available on the day to their markets. So they have the ability to fulfill their long term contract but not the short term supply which is questioning why they are fully able to respect one but not the other. What happens next winter. What do you think we're going to be looking like as we head into September October next year. To what extent do you think we're going to see some of this storage being refilled back up to sufficient levels. Or is this something that we're going to have to be factoring into next winter as well. And the implications for inflation are something that we need to start thinking about now. I think we were still looking at a very volatile gas pricing in the coming months. Then there was the Russia factor but there are also we need to look at other suppliers especially LNG. That would have an impact on the European gas market and the European economic recovery and the forecast for gas demand in the industrial sector. Of course electricity. But we tend to forget also the transportation sector and industrial sector. So basically I think that the situation will improve but we're still looking at high prices in the double digits for a while. There's some question Leslie as to if natural gas and nuclear for instance will be accepted and considered green. As Europe transitions to this green energy plan does that. How does that factor in to the medium term outlook for demand from the front the continent. So I think that guys and nuclear will be included in the European DAX me. That's a realistic decision because we need guys in the near and medium term during the energy transition and that will give a little bit more predictability to it. Also on the investment still needed in the gas sector and that could be investments that are for LNG imports underground storage interconnect tours but also that they will be able to switch to include also low carbon gases such as bio guys or also hydrogen in the future. So it's I think it's a pragmatic decision in terms of demand. The demand of guys is real. You can see also that the German coalition has recognized the role of gas as indispensable in Germany during their energy transition while Germany is closing coal plants. It's less coal plants actually and nuclear power generation in France right now. You have also like a shortage of nuclear power. So there is more reliance on renewable but you need steel guys as a balancing factor in the electricity sector.

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LNG Tankers Heading to Europe Easing Prices

Leslie Palti-Guzman, Gas Vista founder, talks about Russia's impact on gas prices in Europe. European natural gas futures fell for a third day on signs the global liquefied natural gas market is easing, just as shipments help offset the depletion of the region’s storage sites. She's on "Bloomberg Markets: European Close." (Source: Bloomberg)

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