Beautiful Virgin Islands

Saturday, Feb 22, 2025

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
0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×