Hoegh: Ukraine Crisis May Boost Europe’s LNG Demand

Direct Finance

Liquefied natural gas (LNG) suppliers are preparing for increased demand from European countries. These countries are seeking to diversify access to LNG amid concerns about Russian shipments.

Possible disruptions

Concerns about disruptions to supplies are evident across the gas market. Exports from Russia to Europe jumped to the highest level in three weeks, as buyers built up stocks and UK gas prices on March 3 posted the biggest gain since 2011.

Gains from Ukraine dispute

Hoegh LNG Holdings Ltd. and Golar LNG Ltd. predicted gains from the dispute. According to this prediction, demand may boost the need for floating LNG import terminals, like the one Hoegh will deliver to Lithuania this year.

In an interview in Oslo last February 6, Sveinung Stoehle, Hoegh’s Chief Executive Officer (CEO) said, “It will create an extra push in demand. It will put even more focus on energy independence, especially on gas. The only way you can be independent on gas is to import LNG.”