Europe's scramble for gas is depriving poorer nations from getting enough amid the energy crisis

• Europe is snapping up liquefied natural gas, and poorer countries can't get enough supplies, the Wall Street Journal reported.
• Countries including India, Bangladesh, Brazil, and Pakistan have been forced to slash LNG imports as prices soar.

Developing nations are struggling to get enough liquefied natural gas while European countries are snapping up huge amounts as they seek alternatives to Russian supplies.

So far in 2022, Europe has upped its LNG imports by 49%, Wood Mackenzie data shows, according to the Wall Street Journal. Comparatively, India, China, and Pakistan have cut imports by 16%, 21%, and 15%, respectively.

Since Russia invaded Ukraine, Europe has faced a spiraling energy crisis as Moscow curbs its gas exports. LNG used to be cheaper than crude, but the price is now equivalent to $230 per barrel of oil after soaring 1,900% from pandemic lows.

And as LNG prices have shot up, companies are preferring to sell to more creditworthy countries in Europe, the Journal said. Even cargo that was on the way to poorer nations has been rerouted to Europe, as it presents a profitable trade for suppliers despite penalties for breaking contracts with developing countries.

"Because of the Ukraine war, every single molecule that was available in our region has been purchased by Europe, because they're trying to reduce their dependence on Russia," Pakistani Petroleum Minister Musadik Malik said, as the country's LNG tender for $1 billion drew no offers on Thursday.

In Bangladesh, the government has had to shut off electricity for some hours of the day. India, meanwhile, has started to use more coal power and domestic gas, according to the report.

Meanwhile, Europe is rushing to stockpile as much LNG as possible to prepare for the colder winter months when gas demand jumps.

"The European gas crisis is sucking the world dry of LNG," Valery Chow, head of Asia Pacific gas at Wood Mackenzie, told the Journal. "Emerging markets in Asia have borne the brunt of this and there is no end in sight."