Weirdly, big winners in this war could be renewables, and, short term anyway, Coal.
Energy Secretary (and fracking millionaire) Chris Wright’s big grift for Liquified Natural gas (LNG), could be hobbled, even long term, given the sudden uncertainty in Persian Gulf stability.
AlJazeera:
QatarEnergy has suspended liquefied natural gas (LNG) production following a drone attack, straining the global LNG market.
On Monday, Iranian drones struck two sites, according to Qatar’s Ministry of Defence: a water tank at a power plant in Mesaieed Industrial City and an energy facility in Ras Laffan belonging to QatarEnergy, the world’s largest LNG producer.
Qatar’s LNG exports represent 20 percent of the global market. With fewer products reaching the market, LNG supply is down, causing prices to surge.
While 82 percent of QatarEnergy’s sales are to Asian countries, the halt puts increased pressure on other markets across the globe, too, particularly in Europe.
In effect, a smaller supply of gas will need to meet the same global demand. As a result, gas prices have already started soaring: Benchmark Dutch and British wholesale gas prices soared by almost 50 percent, while benchmark Asian LNG prices jumped almost 39 percent, on Monday after the QatarEnergy announcement.
“Not good if Qatar stays offline for long, of course,” said Ziemba. The only silver lining for Europe: “At least the worst of the winter in Europe may be behind,” Ziemba pointed out.
E&E News:
On the eve of the Iran war, Energy Secretary Chris Wright traveled to Texas to celebrate the expansion of a liquefied natural gas terminal.
Gas will likely be “the fastest-growing energy source probably through the rest of my life,” Wright told a crowd gathered at Cheniere’s Corpus Christi plant.
Two weeks later, that outlook has become significantly more complicated. The U.S.-Israel war in Iran has resulted in shutting down the world’s largest LNG facility, in Qatar, and effectively closed the Strait of Hormuz, stranding about a fifth of global gas supplies. Escalating attacks by Iran on tankers and cargo vessels on Thursday have dimmed hopes of reopening the shipping route and led analysts to question the future growth of gas.
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