Europe is concerned if the US reduces gas production and exports.
(Baonghean.vn) - Politico said that the fact that the administration of US President Joe Biden is re-evaluating the process of approving gas export licenses is a concern for Europe, which is dependent on supplies from the US, in the context of reducing the amount of gas purchased from Russia.
RT quoted Politico (USA) as warning that Washington's review of natural gas production and export, due to concerns about its impact on climate change, is causing fear in Europe. Because, the European energy industry in recent years has shown 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—that could cause 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 cut its consumption of Russian gas to 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 US, reaching 60 billion cubic meters by 2023.
“Liquefied natural gas 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 reduced 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. Total exports for the year, US exports increased 14.7% to 88.9 million cubic meters.