From diversification to integration: A market-based LNG coordination mechanism in Europe

AI Summary

Europe has shifted its energy strategy post-2022 Russia-Ukraine invasion by diversifying LNG suppliers, commissioning new terminals, and expanding regasification capacity to enhance energy security.

For decades, European energy policy rested on a convenient assumption: that physical infrastructure and long-term supply contracts were, together, a sufficient basis for security. The gas crisis that followed Russia’s invasion of Ukraine in 2022 exposed that assumption at great cost. Europe moved quickly—diversifying suppliers, commissioning new LNG terminals, expanding regasification capacity across the Baltic, ...