Jan Dieleman, Cargill Inc.’s head of ocean transportation business, told Bloomberg that European importers are hiring tankers for long-distance hauls of energy products from countries halfway around the world. If it weren’t for the sanctions, natural gas and other refined energy products would flow via pipelines from Russia to Europe.
But since Europe is hellbent on rapidly shifting its entire energy supply chain away from Russia. EU importers are hiring tankers to source liquefied natural gas (LNG) from Asia.
In a recent note, we outlined the insanity behind the EU’s panic buying of LNG from China. It’s so idiotic because China is just reselling Russian LNG…
Dieleman said higher fuel costs for vessels mean ship operators are switching to dirtier-burning fuels like diesel or crude oil on these long-haul trips.
Meanwhile, EU countries are aggressively restarting fossil fuel power plants ahead of what could be a very dark and cold winter. Some governments have even asked residents to burn firewood to heat their homes as the energy crisis could induce rolling blackouts during peak demand hours.
So the whole strong climate action EU has been promoting to decarbonize its grid to save the planet is at risk of unraveling this winter.
The very fact that Europe has to source LNG from Asia on longer routes while vessels burn dirtier fuel is entirely hypocritical to the bloc’s stance about saving the planet. For some context, shipping is responsible for almost 3% of man-made carbon-dioxide emissions.
Fri, 09/23/2022 – 02:45
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Author: Tyler Durden