LNG TRADE-Conclusion: Supply diversity cuts risk exposure

Consumers of LNG must have a broadly diversified supply base to minimize consequences of any potential supply disruption. Expanding the number of suppliers often increases risk exposure, which can be most effectively moderated by pulling supplies from widely varied sources.Part 1 of this article (OGJ, Apr. 16, 2007, p. 57) examined the risks faced by the US as it expands sources of its natural gas supplies, as well as efforts made to address these risks.This concluding part completes the examination of the US situation before turning toward Europe’s still-increasing dependence on Russia as it primary gas supplier.US suppliesQatar Petroleum (QP) signed a 5-year $10 billion agreement ...

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