Don’t be surprised, Australia is the new victim of the Russo-Ukrainian war

Jakarta, CNBC Indonesia – The war between Russia and Ukraine has had an impact on other countries. After India and the Netherlands were affected for various reasons, now Australia is also being affected.

The impact that Australia experienced from the war was that Europe began to target their gas supply. That is believed to put Canberra’s domestic supplies at risk.

This follows the policy of banning Russian gas imports which European countries imposed as a sanction for Moscow’s attack on Ukraine, so that Europe is now eyeing Australia as a gas supply.

In an analysis, analyst from Credit Suisse, Saul Kavonic, said Europe is likely to take a lot of supply from Australia. It is known that Russia previously supplied up to 40% of the country’s gas needs.

“Europe is taking all the LNG reserve volume out there and every spare floating LNG regas capacity. So there’s no regas spare capacity left for Australia,” Kavonic was quoted as saying. ReutersWednesday (1/6/2022).

Although Australia is the world’s largest exporter of LNG, its major gas fields are far from Sydney and Melbourne and other major cities in the southeast. Most of its gas production is also tied to contracts with Asian users.

Australia’s competition regulator previously warned that under this situation, without LNG imports, the southeastern market would face shortages from the winter of 2024.

“What is more concerning is that by 2026 or 2027, we expect shortages across the entire east coast,” Australian Competition and Consumer Commission Commissioner Anna Brakey told a conference in March.

Meanwhile, Europe itself is said to be trying to get the floating storage and regasification unit (FSRU) needed to convert LNG into gas. Most recently, FSRU provider company Hoegh has announced two FSRU commitments to German utility RWE.

European countries themselves are still intending to stop the flow of gas usually obtained from Moscow. This step was taken as a form of resistance to Russia’s move to attack its neighbor, Ukraine.

[Gambas:Video CNBC]