Europe concerned if US reduces gas production and exports
(Baonghean.vn) - Politico said that the fact that the US President Joe Biden's administration is re-evaluating the gas export license approval process is a concern for Europe, which is dependent on supplies from the US, in the context of reducing gas purchases from Russia.
RT quoted Politico (USA) as warning that Washington's review of natural gas production and export, due to concerns about the impact of climate change, is making Europe afraid. Because, the European energy industry in recent years has revealed its fragility.
The US Department of Energy's review of the gas export license approval process risks stalling projects to meet Europe's energy needs, as the continent cuts supplies from Russia.
Politico called it another example of Washington’s priorities — in this case, reducing its dependence on fossil fuels — being overshadowed by the US’s calculus, which could create headaches for European leaders and even hinder the achievement of shared security goals between Washington and Europe.
While President Joe Biden’s supporters have welcomed the news of greater control over the climate impact of gas, it has raised concerns among European energy executives. The trade association EuroGas estimates that the European Union has cut its consumption of Russian gas by less than a third of the 155 billion cubic meters of gas Russia exported to Europe in 2021. To meet that target, the EU has had to fill the gap by tripling imports of liquefied natural gas (LNG) from the United States, reaching 60 billion cubic meters by 2023.
“LNG is a relief for Europe and contributes to stabilizing gas and electricity prices for consumers, after a long period of record high prices due to reduced supplies from Russia,” said EuroGas President Didier Hollot. Hollot added that a reduction in US exports could lead to a widening and prolonging of the global supply imbalance.
Politico experts believe that the reduction in supply from the US could prompt European and Asian companies to sign contracts with Qatar - a country that is planning to significantly increase its production of liquefied natural gas.
Reuters cited ship tracking data showing that US LNG exports set a record in December and for all of 2023. Accordingly, about 8.6 million cubic meters of LNG left US ports last month. In total, US exports increased 14.7% for the year to 88.9 million cubic meters.
