The United States opens the door to energy and agriculture in the Russian-Ukrainian conflict! Exports of U.S. liquefied natural gas (LNG) and agricultural industries to Europe have increased significantly
U.S. liquefied natural gas (LNG) and agricultural exporters are emerging as big winners in Europe's supply crisis. LNG exports to the EU have been at a record high for three consecutive months. The United States wheat, corn and other agricultural products are also replacing Russia and Ukraine in export to Europe, the Middle East and other regions.
Reuters said on the 10th that major developers such as Cheniere Energy Inc, the largest exporter in the United States, have signed many long-term contracts for LNG sales in recent months. The U.S. Energy Information Administration expects U.S. LNG exports to reach 11.4 billion cubic feet per day in 2022. This will account for about 22% of the expected global LNG demand of 533 giga ft/day by 2022 and will surpass Australia and Qatar, the two largest exporters at present.
"The United States is becoming a global energy power," the German newspaper Le Monde pointed out, and the Russian-Ukrainian conflict is a global zero-sum game. For the United States, it is a win-win situation. On the one hand, the country could free its European allies from dependence on Russian gas. On the other hand, the profits of their own exports are more lucrative.
Germany alone is supplying 1.5 billion euros for U.S. LNG imports. LNG receiving stations will be built quickly, which means that there will be no longer dependence on Russian gas in the future. There are currently 37 LNG receiving stations in Europe, of which 26 are located in EU member states.
"Food prices in Europe are skyrocketing!" Germany's "Manager Magazine" said on the 9th that the Black Sea region has become the world's granary. Because of the Russian-Ukrainian conflict, the prices of wheat, corn and other futures on the Chicago Board of Trade are also rising.
Together, Russia and Ukraine account for 30% of global wheat exports, nearly 20% of corn exports, and 80% of sunflower oil. Especially in the Middle East and European markets, Russia and Ukraine are important wheat suppliers. Turkey and Egypt are the largest importers of Russian wheat. At present, the region's grain exports to Asia, Africa and the European Union have been greatly affected.
Joseph Fiss, an expert at the International Food Policy Institute (IFPRI), said that today, Exports from Russia and Ukraine account for about 12% of global calorie trade. These two countries are among the top five exporters of a wide range of food in the world. Of particular concern are countries in the Middle East and North Africa, where more than 50 percent of their food needs come from Ukraine and Russia. The European Union (mainly livestock) and China, as well as countries such as Egypt and Libya, are also considered vulnerable when it comes to corn.
The United States was replaced by Russia as the world leader in the wheat market, with a world market share of only 10.8%, Australia 12.5% and the European Union 18%. In terms of corn, the U.S. still leads at 31.5 percent, followed by Argentina (21.5 percent) and Brazil (16.4 percent).
