The United States is set to significantly increase gas deliveries to the UK as part of a partnership agreement on
energy security announced Wednesday.
“In the coming years, the US plans to more than double the amount of gas exported to the UK compared to 2021, to ensure security of supply and reduce price volatility,” according to a UK government statement.
Washington aims to export 9-10 billion cubic meters of liquefied natural gas over the next year via British terminals, including with the aim of “fill gas storage“, continues the text.
Under the new partnership, the United States and the United Kingdom will “work to reduce global dependence on Russian energy exports, stabilize energy markets and strengthen collaboration on energy efficiency, nuclear and renewables,” the statement said. These efforts will be led by a new Action Group
including senior British and American officials, who will meet for the first time on Thursday.
“This partnership will lower prices for British consumers and help end Europe’s dependence on Russian energy once and for all,” British Prime Minister Rishi Sunak was quoted in the statement as saying on Wednesday.
The announcement comes after the EU, G7 and Australia put a cap on Russian crude exports at $60 on Monday, as well as a European embargo on Russian oil. Energy prices have soared since the economy reopened after the peak of the Covid-19 pandemic, and have accelerated further since the start of the Russian invasion of Ukraine, driving up inflation in many parts of the world and resulting in a cost of living crisis.
The UK says it hopes to reduce gas demand by 8% this winter compared to the last five years through “targeted measures”. Last week, London announced aid for home insulation and a campaign to reduce consumption. By 2030, the country hopes to reduce the UK’s energy consumption from buildings and industry by 15% from its 2021 levels.
Natural gas remains essential to “ensuring energy security in the short term” and the UK’s LNG import infrastructure is a key element of “wider European security of supply”, according to a joint statement from UK and US leaders.
The partnership between Washington and London also covers the promotion of “clean energy, from offshore wind to carbon capture” but also civil nuclear power. The UK has committed to achieving carbon neutrality by 2050, which is what US President Joe Biden has also committed the US to. London, which relies heavily on nuclear power to achieve this, but whose fleet of power plants is aging, confirmed at the end of November its intention to build the new Sizewell C power plant in partnership with the French electricity company EDF, and the withdrawal of the Chinese company CGN from the project.
