Russia has cut off Europe’s gas supplies. But despite Putin’s best efforts, it’s looking like a toasty winter on the continent.
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Ships carrying liquefied natural gas (LNG) are lined up in ports across Europe. The only problem: finding a place to put it all!
From a report out this morning in Bloomberg:
Europe suddenly has more gas than it can use.
Starved of the Russian imports on which its long relied, Europe has rushed to import liquefied natural gas from around the world to fill up storage. Now, a combination of unusually warm weather and successful bidding for cargoes means facilities are almost full before Europeans have even turned the thermostats up. Gas prices have also fallen back sharply, and are less than a third of their summer peak.
Bloomberg’s index for loaded tankers on the water for 20 days or more has risen to the highest since at least 2017. Last week, Spain’s Enagas SA warned it may need to limit numbers as it has little room to absorb excess imports.
This sudden turnabout shows how well markets work. Natural gas prices spiked in Europe, so suppliers sent their gas there.
After all, why not get the best price?
But so many sent gas, the price has plummeted. It’s now lower than when the war in Ukraine began.

Russia has lost its best bargaining chip. If it can’t freeze the continent, what other options does it have?
Russia has also damaged its economic future.
Europe will never view it as a reliable supplier again. Putin may struggle to find a buyer for his gas, given his prior treachery.
Russia should keep in mind that there’s an expiration date on that gas. Solar energy is already cheaper in many circumstances.
Governments are working to limit CO2 emissions. Renewables are scaling and getting cheaper every day.
In a few decades, there may be little demand for fossil fuels.
The future for Russia looks bleak. Meanwhile, with its energy supplies diversified, Europe will be more secure than ever.
What do you think the future holds for Russia and Europe? Leave a comment at the bottom and let me know.
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Photo: “#8962 LNG ship from BR189” by Nemo’s great uncle is licensed under CC BY-NC-SA 2.0.