- More than 35 LNG-laden vessels may start looking for alternative ports outside Europe to offload their cargo.
- The MidCat would create a third gas connection pipeline to carry gas between France and Spain.
Russia’s kickback to sanctions imposed by the west over the inversion of Ukraine in February by cutting gas flows has resulted in European energy crises. As a result, the region has had to find alternative supplies to cater for its energy needs. The region has had to find alternative supplies of gas.
As a result, Dozens of ships carrying superchilled liquefied natural gas (LNG) circling off the coasts of Spain have been unable to secure slots to unload due to the lack of “regasification” capacity, as plants that convert the seaborne fuel back to gas. This has prompted grid operators in the country to warn they may have to suspend loading to tackle this “exceptional situation”.
A statement released by Enagas, Spain’s national gas grid operator, on Monday, entitled “declaration of exceptional operational situation”, postulated that Enagas might have to reject unloads of LNG due to overcapacity at its terminals. Unfortunately, backlogs remain uncleared, the more than 35 LNG-laden vessels drifting off Spain and around the Mediterranean, ships may start looking for alternative ports outside Europe to offload their cargo. However, This week, the leaders of France, Germany, Portugal and Spain will meet to agree on the MidCat pipeline that would serve as a third gas connection to carry gas between France and Spain. Also, in the future, MidCat would be used to transport hydrogen to central Europe, reducing European reliance on Russian gas.