- Supply of natural gas is outstripping demand on global markets
- Global trends are making Europe an increasingly attractive market for U.S. LNG exporters
- That could set up a price war with Gazprom, with far-reaching geopolitical consequences
The glut of liquefied natural gas (LNG) in the global market is growing as exports from the United States increase and demand from Asia wanes. These trends are fueling competition in regional gas markets, and none is as hotly contested as Europe, which could become the market of last resort (also known as a “sink” market) for U.S. LNG. If it does, a price war could break out as American LNG exporters battle Russia’s Gazprom and its pipeline-transported gas for market share. The geopolitical implications of such a conflict could be far-reaching.