- Greece Emerges as Key Transhipment Hub for American LNG.
- EU Reliance on Russian Gas Remains Uneven.
- Greece Poised to Benefit Economically as U.S. LNG Hub.
The United States is ramping up its LNG capacity to tap into new markets and lessen Russia’s grip on energy, with Greece stepping up as a key ally and transit hub, as highlighted in Intermodal’s latest insights. Nikos Tagoulis, a Senior Analyst at Intermodal, points out that the global energy scene is heavily influenced by geopolitical and economic factors, with the U.S. leveraging its growing natural gas output to meet two main goals, reports Safety4Sea.
Securing New Markets and Cutting Russian Revenue
The main focus of U.S. policy is twofold: to carve out new markets for the expected influx of American LNG from major liquefaction projects set to launch in 2025 and 2026, like Corpus Christi, Plaquemines, and Golden Pass, and to limit Moscow’s fossil fuel earnings, which in turn restricts Russia’s capacity to fund military actions in Ukraine.
Europe is viewed as a crucial partner, especially with its pledge to phase out dependence on Russian energy by 2027. However, the situation is more complicated than it seems. While nations like Lithuania and Poland have stopped importing Russian gas, others, such as Hungary and Slovakia, still rely on it, making a unified EU response challenging. Factors like existing contracts, historical ties, pricing, and national interests add layers of complexity to the transition.
Shifting Global LNG Trade Flows
The U.S. surge in natural gas production has reshaped global trade patterns, redirecting more LNG shipments from Asia to Europe. This change has put additional strain on the freight market, even though shipping rates have recently eased. Greece’s role as a transshipment hub for American LNG heading to Europe is becoming increasingly crucial.
Greece’s Growing Role as an Energy Hub
The recent visit of U.S. Interior Secretary and head of the Energy Sovereignty Council, Doug Burgum, to Greece’s Revithoussa LNG terminal near Athens highlighted this importance. Burgum emphasised that Greece is not merely a transit point but a central node in U.S. plans to replace European purchases of Russian gas with American LNG.
Alongside Revithoussa, the Alexandroupoli FSRU in Northern Greece strengthens the country’s capacity as an energy hub. Combined with Greece’s strategic location, these facilities make the country indispensable to the Vertical Corridor, integrating gas systems across Southeast and Central Europe. By channelling diverse gas supplies through its LNG terminals, Greece helps reduce regional reliance on Russian imports. “For Greece, this alignment presents substantial economic opportunities. As a hub for U.S. LNG, the country is poised to benefit from the sector’s projected expansion,” Nikos Tagoulis highlights.
Evidence from Trade Flows
Recent trade trends highlight Greece’s expanding role in the energy market. In July and August, the volume of American LNG shipments to Greece more than doubled compared to the previous year, and June also saw significant increases. By 2025, the U.S. is expected to supply 85% of the LNG cargoes arriving in Greece, alongside other suppliers like Nigeria and Norway.
Strategic and Economic Benefits
As global politics and energy economics intersect, Greece is emerging as a crucial gateway for U.S. LNG into Europe. Strengthening ties with Washington is beneficial for both sides: it helps the U.S. achieve its goals of diminishing Moscow’s energy income and tapping into new markets, while also boosting Greece’s economic outlook and solidifying its position in Europe’s broader strategy to reduce reliance on Russian energy.
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Source: Safety4Sea
