EU-US working group reaches mutual commitment to maintain high level of US LNG supply.
LNG deliveries to Europe
The supply of U.S. LNG will be made at prices that both parties agree reflect market fundamentals. The underlying desire is for stability in the energy market. In 2022, U.S. LNG deliveries were expected to increase by 15Bcm as a result of the joint declaration on energy security.
In fact, from January to October 2022, they already represent 48Bcm, 26 more than in the entire year of 2021. Supply is expected to reach an additional 50Bcm in 2023 and subsequent years compared to 2021. The European Commission has expressed its desire to aggregate part of the storage demand.
This is part of plans to jointly purchase gas from reliable supply partners at affordable prices. The working group is also studying environmental issues. They are investigating opportunities to reduce flaring, venting and methane leakage.
Rebalancing with Russia
The alliance for energy security between the European Union and the United States is a way to reduce the dependence of the old continent on Russia. The drop in Russian gas imports is causing European prices to soar, reaching record highs at the end of August. Since then, they have been declining, thanks in particular to the high level of storage and the reduction in demand.
The supply of American LNG partly offsets the consequences of Russian blackmail. The United States and the EU took this opportunity to reaffirm their support for Eastern European countries, including Moldova. The latter is suffering the full force of the Russian use of energy as a weapon.
Gazprom has repeatedly threatened Moldova with cutting off gas deliveries in recent months. The partnership between the EU and the United States is an opportunity to reduce the revenues collected by Russia to finance the war in Ukraine. In addition, both parties say the partnership would allow them to accelerate the transition to clean energy.
