(Opinion) Europe’s demand for liquefied natural gas (LNG) due to the self-inflicted loss of Russian pipeline gas has driven up LNG prices, widening the energy gap between wealthier and lower-income regions.
This energy gluttony is compelling South and Southeast Asia to resort back to coal, undoing strides made towards greener energy.
A hunger for LNG in Europe is driving a significant shift in the global energy matrix.
The collateral damage? Asia.
The region now grapples with expensive LNG and is sliding back into coal dependency to keep the lights on.
Russell Hardy, CEO of Vitol, attests to this stark reality, stating that while LNG remains available for Asia, the skyrocketing prices make it an impractical solution.
The blowback of Europe’s pride-fueled energy pivot isn’t just impacting the environment, but also economic equity.
European nations manage to dodge their energy crisis at the expense of countries in South Asia, which have been plunged into darkness due to the redirection of LNG resources.
Despite Europe’s energy crisis being resolved temporarily, the ensuing crisis in Asia is far-reaching.
Europe’s insatiable LNG consumption has not only hindered the projected growth of Asian LNG use but also accelerated coal dependency.
The push to coal is most evident in nations like Bangladesh, Vietnam, and Thailand, and even more prominent in countries like Pakistan, Sri Lanka, Indonesia, Japan, and South Korea.
The Asian LNG crisis underscores the need for comprehensive renewable energy advancements and underscores the urgency for equitable LNG distribution globally.
Europe’s LNG gluttony isn’t a mere energy matter; it’s an issue of global economic equality and environmental sustainability.
As such, rectifying these disparities is incumbent on all international stakeholders.