Could Ukraine’s recent action to finally stop the flow of Russian gas through GazProm, the gas line that crosses the war-torn country and into Europe, have an impact on Oklahoma?
It’s just a question of speculation. Some observers have already called it “one of Moscow’s biggest defeats” by Ukrainian president Volodymyr Zelensky, but not one that was won on the battlefield. The Associated Press reported Gazprom said in a statement Wednesday it “has no technical and legal possibility” of sending gas through Ukraine, due to Kyiv’s refusal to extend the deal.
Before the war, Russia supplied nearly 40% of the European Union’s pipeline natural gas. Gas flowed through four pipeline systems, one under the Baltic Sea, one through Belarus and Poland, one through Ukraine and one under the Black Sea through Turkey to Bulgaria, reported the AP.
From this observers point of view, it raises the question why the decision to end the flow of gas made on day-one of Russia’s invasion? When Ukraine finally pulled the plug on the gas line used by Russia to sell gas to Europe, it stopped the flow of money into Vladimir Putin’s war machine to the tune of billions of euros a year. In short, millions of dollars.
What kind of world are we living in where a country at war with Russia allowed Putin to cross it with a gas line and make money to throw back at Ukraine in the form of bullets and bombs?
Whatever, it now raises mere speculation whether the decision could eventually reach Oklahoma. How? Could it put more importance on the natural gas shipped from Oklahoma to the Gulf Coast and LNG terminals—terminals affected last year by President Biden’s decision to freeze construction of new LNG operations. Remember, a lot of the LNG was shipped to European customers and at the time of the freeze, Senators such as James Lankford of Oklahoma had cried the Biden decision harmed US allies in Europe.
Take a look at the Midship line that became operational a few years ago.
Midship Pipeline Company, LLC operates a small 200-mile pipeline starting in Kingfisher County, Oklahoma and ending near Bennington, Oklahoma. Owned by Cheniere Energy, Inc. and operated by Midship Pipeline Company, LLC, the pipeline primarily serves producers and midstream sectors at more than 50% utilization. Key customers include Devon Gas Services LP, Marathon Oil Company, and Corpus Christi Liq.
Get the picture? It is very possible, especially if Putin’s war drags on for more months, that Europe will pray for the US to resume supplies of LNG to heat homes and businesses. Some had reported that the loss of GazProm would not have an impact this year because of the natural gas in storage in European countries. However, reports also have indicated the theory is wrong.
Consider what Bloomberg reported this week: Europe is burning through its gas reserves at the fastest pace in seven years, leaving Germany “acutely” exposed as cold weather sweeps the Continent. Stockpiles have dropped more quickly than at any point since 2018, falling 25pc from their peak, according to Gas Infrastructure Europe data compiled by Bloomberg.
Throw in the politics of Biden versus Trump. When Donald Trump takes the White House later this month, his “Drill Baby Drill” energy policy could quickly reverse the LNG freeze installed by Joe Biden. Could we soon see more LNG ships leaving U.S. ports headed for Europe?