Summary
Why should there be any doubt that Europe can achieve their LNG import terminal plans?
Analysis
As I was quoted in the original article it is incumbent on me to comment on this request for analysis. Europe has a number of LNG import terminals operating, with more in construction and in planning and there is no doubt that most will continue and get built. Funding is available for well structured projects even now.
Europe needs LNG imports and gas supply diversification and is taking the relevant infrastructure steps to achieve this. Clearly not all planned terminals will be built, perhaps specifically in Italy, but all European countries with coastline are actively involved in terminal development programmes. A better question to ask perhaps is how these terminals will be operated in terms of load factor. Because Europe is not Asia, the baseload terminals will not be utilised 100% of the time but that is not their purpose. They will have a mixture of long-term contracts and a considerable capacity for spot and diverted cargoes to meet the demand requirements.
Gas demand in Europe has dropped around 10% due to the current recession but LNG is a long-term business and countries and companies are taking the long view and continuing to build, even if a little slower.
