Beautiful Virgin Islands

Friday, Mar 31, 2023

Just where is Joe Biden going to find gas for the EU?

Just where is Joe Biden going to find gas for the EU?

Washington is counting on markets to replace some of the gas now supplied by Russia.

U.S. President Joe Biden on Friday pitched himself as the EU's savior from its Russian energy addiction — but arranging a rapid increase in the amount of liquefied natural gas sailing to Europe won't be easy.

“We’re coming together to reduce Europe’s dependence on Russian energy,” Biden said at a joint press conference with European Commission President Ursula von der Leyen as the two leaders worked on how to punish Russia for invading Ukraine.

Both sides mentioned a goal of 15 billion cubic meters (bcm) of additional liquefied natural gas (LNG) delivered to EU markets this year, with hopes for 50 bcm more of U.S. LNG annually through 2030. Russia sends the EU 155 bcm a year, or about about 40 percent of the bloc’s total gas consumption.

But the details aren't clear.

Von der Leyen spoke of a "U.S. commitment to provide" those short-term volumes, but the final text of the joint statement says the U.S. will "work with international partners and strive to ensure" those cargoes find their way to the EU this year.

A senior U.S. official clarified that the promise of 15 bcm this year is actually a commitment to try and help convince companies in Asia or elsewhere that were expecting cargoes this coming winter to agree to send them to Europe instead. That would be a repeat of what happened this past winter, the official said.

But LNG industry executives meeting in Texas earlier this month warned that the weather would play a major role in dictating where cargoes go — and that a cold snap could see Asian countries clinging to their promised fuels.

"All importers are fishing in the same pool for supply," warned the International Energy Agency (IEA) in this month's guide to weaning the EU off Russian gas. Increasing LNG flows to the bloc would mean "exceptionally tight LNG markets and very high prices."

There is gas out there. The IEA wrote that Europe could scrounge up some 20 bcm of additional LNG on global markets — with 10 bcm more via pipelines from Norway and Azerbaijan, should those countries agree to ramp up production.

Even with considerable belt-tightening measures to cut demand and a speedy rollout of renewables, the best the EU could aim for would be cutting Russian gas reliance by a third this year, the IEA estimated. Brussels hopes for a two-thirds reduction.

Building capacity


Boosting U.S. LNG exports will be easier if European countries sign long-term contracts with U.S. suppliers, like the 11-year deal France's Engie signed in December with Cheniere Energy in Texas.

A fact sheet released by the White House on the deal noted that the promise of 50 bcm of future annual deliveries of U.S. LNG was "on the understanding that prices should reflect long-term market fundamentals and stability of supply and demand."

On Friday, Biden said it also meant the EU fast-tracking building permits for new LNG import terminals and pushing European countries to show there is sufficient demand for American gas through 2030.

“To accomplish this, the European Commission is going to work with the member states to store gas across the Continent [and] to build more infrastructure to receive LNG," Biden said.

Countries are already starting to move.

German Chancellor Olaf Scholz on Wednesday promised: "We will build our own LNG terminals much faster than we have until now,” while the Netherlands signed a five-year contract to lease a floating LNG import and storage terminal for later this year.

The European Parliament also voted to approve a list of cross-border energy projects to receive fast-tracked permits this month, which include 20 gas projects from import terminals to pipelines.

This week the European Commission also proposed a new regulation mandating gas purchases to beef up storage stocks each summer to ensure they are filled to 90 percent ahead of each heating season.

The race to get more gas isn't entirely at odds with the EU's green goals; it's aiming to be climate neutral by 2050, which doesn't leave much of a long-term place for natural gas.

The joint EU-U.S. statement says the new gas infrastructure should have a low carbon footprint, and includes a section on energy-saving measures in line with the EU's recent pledge to drastically reduce oil and gas consumption.

Von der Leyen underlined those targets by departing from prepared remarks to add that independence from Russian gas "can only be achieved through investment in renewables ... but also additional gas supplies."

Climate campaigners are aghast.

"Europe already has enough capacity to import the amount of gas the U.S. intends to supply," said Murray Worthy, an anti-gas campaigner for NGO Global Witness. "Instead of lining the pockets of American fracking companies, Europe should focus its energy investments on lasting solutions such as improving building insulation, heat pumps and renewable energy sources."

Von der Leyen insisted that new infrastructure would not lead to stranded assets or additional fossil fuel dependence, because "the infrastructure we use for gas today can be used for clean hydrogen in the future."

But American LNG exporters are already taking a victory lap.

Charlie Reidl, executive director of the Center for Liquefied Natural Gas lobby in Washington, said the joint statement's emphasis on "long-term contracting mechanisms with U.S. LNG suppliers" would "establish a virtual LNG pipeline to Europe ... well into the future."

Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
Don’t Dismiss China’s Peacemaking Bid
I have a dream, MLK inspiring speech
Father obliterates council members following viral TikTok of biological male masturbating in women’s bathroom..
Aretha Franklin, Marvis Staples - Oh Happy Day
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
BVI Freedom Song
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Billy Preston - You Can't Beat God Giving (Live)
Nashville style execution
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Former Starbucks CEO Howard Schultz:
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
Hello Dolly
This is how an electric car saves all the energy that he would have spent if he had lived 50 years longer.
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
Bob Marley - Get Up Stand Up
Social Media censoring users for saying the true
Yes He Can
Smart Iranian fashion designer teaching dummy TV anchors lesson about reality
What A Friend We Have In Jesus
AMERICA, 2023
Unforgettable
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Touch The Hem Of His Garment
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
The Lord's Prayer
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
THE GOD MOVEMENT...BEAUTIFUL BVI
AOC explains why she opposes banning TikTok
Siyahamba
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Ramblin' Rose
Gordon Moore, a co-founder of Intel Corporation, died at 94
Protoje - Who Knows ft. Chronixx
Powell: Silicon Valley Bank was an 'outlier'
Pressure - Virgin Islands Nice
Donald Trump arrested – Twitter goes wild with doctored pictures
Phil Wickham - House Of The Lord
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
My God Is Real (Yes, God Is Real)
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Louis Armstrong - When The Saints Go Marching In
Paris Rioting vs Macron anti democratic law
Kanye West Sunday Service - hallelujah, salvation, and glory
'Sexual Fantasy' Assignment At US School Outrages Parents
Jonathan Nelson - I Believe (Island Medley
Credit Suisse to borrow $54 billion from Swiss central bank
From The Virgin Islands Sqad Up
Russian Hackers Preparing New Cyber Assault Against Ukraine
Common, John Legend - Glory
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
If this was in Tehran, Moscow or Hong Kong
I have a dream, MLK inspiring speech
Nashville police officer, and a female driver shooting one another
Aretha Franklin, Marvis Staples - Oh Happy Day
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
BVI Freedom Song
Mexican President Claims Mexico is Safer than the U.S.
Billy Preston - You Can't Beat God Giving (Live)
A brief banking situation report
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Lady bites police officer and gets instantly reaction
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Hello Dolly
Silicon Valley Bank exec was Lehman Brothers CFO
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
Bob Marley - Get Up Stand Up
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Yes He Can
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
What A Friend We Have In Jesus
Elon Musk Is Planning To Build A Town In Texas For His Employees
Unforgettable
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Touch The Hem Of His Garment
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
The Lord's Prayer
Fitness scam
THE GOD MOVEMENT...BEAUTIFUL BVI
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Siyahamba
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
×