https://sputnikglobe.com/20230925/eu-to-rely-on-us-lng-for-decades-amid-backfiring-anti-russia-sanctions-1113650822.html
EU to Rely on US LNG 'For Decades' Amid Backfiring Anti-Russia Sanctions
EU to Rely on US LNG 'For Decades' Amid Backfiring Anti-Russia Sanctions
Sputnik International
The European Union’s intention to diversify from Russian natural gas means it will be forced to rely on America’s liquefied natural gas (LNG) for decades to come, Ditte Juul Jørgensen admitted.
2023-09-25T14:16+0000
2023-09-25T14:16+0000
2023-09-25T14:16+0000
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russian economy under sanctions
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The European Union’s much-touted self-harming intention to diversify from Russian natural gas means it will be forced to rely on America’s liquefied natural gas (LNG) for decades to come, the bloc’s top energy official has admitted.The EU’s ambitious climate goals and pledge to phase out fossil fuels are also likely to be shoved on the back burner, as Ditte Juul Jorgensen, director general for energy at the European Commission, told a media report that the bloc’s reliance on exports of US LNG was not going away any time soon.While the official touted “conservation” and more renewable energy, such as wind and solar, as the “instruments” at the disposal of the EU that would allow it to survive another energy crisis in the coming winter, she added:Last year, when Brussels cobbled together package after package of sanctions targeting Russia over Ukraine, anyone with a clear understanding of the energy needs of the 27-member bloc could have foreseen that it was backing itself into a corner. The EU’s proclaimed decision to wean itself off Russian gas, along with “net zero carbon emissions by 2050” goals were a tough act to follow through on. Sure enough, now, for all intents and purposes, Brussels will continue to consume expensive US LNG beyond the end of the decade, to the frustration of politicians and environmental campaigners.Brussels waded into an agreement with the administration of US President Joe Biden in March 2022 to “work toward the goal of ensuring, until at least 2030, demand for approximately 50 billion cubic metres (bcm) of additional US LNG." At the time, the pact was struck on the basis that it was consistent with EU and US shared climate goals.Jorgensen’s new statements will help European buyers “clear the path forward” now, the report added, citing initial evidence of reluctance to sign deals with US suppliers past the 2030 deadline.America’s LNG exports to EU member states surged more than twofold last year, reaching 56 bcm in 2022. Just a year before that, the shipped amount had been 22 bcm annually. There has been an echo of frustrated voices from some European politicians complaining that US LNG contracts are fraught with risks to the EU’s climate goals. But the reality is that US LNG companies are signing increasingly more long-term supply deals with Europe. Thus, America’s largest LNG exporter - Cheniere Energy - has struck a deal for two contracts with Europe-based Equinor and BASF to ship 2.55mn tons annually far into the 2040s.In June, Venture Global LNG reportedly signed contract spanning 20 years to deliver 2.25mn tonnes annually to German state-owned company Securing Energy For Europe (SEFE).Last year, Europe found itself plagued by soaring inflation caused by an energy crisis to a large degree of its own making as sanctions against Russia backfired. The US, European Union, and Britain imposed a swathe of economic restrictions against Russia. In December, when the EU adopted its ninth package of sanctions, it joined the G7 decision to set a price cap on Russian oil at $60 per barrel. The cap was to be reviewed every two months to remain 5% below the International Energy Agency benchmark. Moscow, however, refused to accept the price limit, saying that Russian oil would only be sold to countries on a market basis.The sanctions fed into a major fuel crunch in Europe, record-high inflation, and skyrocketing energy prices, leaving citizens of European countries forced to live on the brink of fuel poverty due to skyrocketing prices. Meanwhile, Russia's economy has overtaken Germany, UK and France despite Western sanctions. Furthermore, the EU is set to import record volumes of LNG from Russia this year, despite the bloc's target to abandon Russian fossil fuels by 2027, according to an August media report. At the end of the first seven months of this year, Belgium and Spain became the second and third largest buyers of Russian supercooled gas after China, according to a Global Witness analysis.
https://sputnikglobe.com/20230907/russia-winning-war-against-wests-hot-air-oil-and-gas-sanctions-threat-1113183868.html
https://sputnikglobe.com/20230810/russian-economy-overtakes-germany-uk-and-france-despite-western-sanctions-1112511026.html
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eu's sanctions on russia, to diversify from russian natural gas, backfiring anti-russia sanctions over ukraine, reliance on us liquefied natural gas (lng)
eu's sanctions on russia, to diversify from russian natural gas, backfiring anti-russia sanctions over ukraine, reliance on us liquefied natural gas (lng)
EU to Rely on US LNG 'For Decades' Amid Backfiring Anti-Russia Sanctions
Following last year's disruption of Russian gas supplies due to the ratcheted-up Western sanctions on Moscow, the continent has been left grappling with mind-boggling energy bills and accelerated inflation. Surging costs of record liquefied natural gas (LNG) imports from the US also ran roughshod over the tattered budgets of European households.
The European Union’s much-touted self-harming intention to diversify from
Russian natural gas means it will be forced to rely on America’s
liquefied natural gas (LNG) for decades to come, the bloc’s top energy official has admitted.
The EU’s ambitious
climate goals and pledge to phase out fossil fuels are also likely to be shoved on the back burner, as
Ditte Juul Jorgensen, director general for energy at the European Commission, told a media report that the bloc’s reliance on exports of US LNG was not going away any time soon.
While the official touted “conservation” and more renewable energy, such as wind and solar, as the “instruments” at the disposal of the EU that would allow it to survive another energy crisis in the coming winter, she added:
“We will need some fossil molecules in the system over the coming couple of decades. And in that context, there will be a need for American energy,” said Jorgensen in an interview in New York.
Last year, when Brussels cobbled together package after package of
sanctions targeting Russia over Ukraine, anyone with a clear understanding of the energy needs of the 27-member bloc could have foreseen that it was backing itself into a corner. The EU’s proclaimed decision to
wean itself off Russian gas, along with “
net zero carbon emissions by 2050” goals were a tough act to follow through on. Sure enough, now, for all intents and purposes, Brussels will continue to consume expensive US LNG beyond the end of the decade, to the frustration of politicians and environmental campaigners.
Brussels waded into an agreement with the administration of US President Joe Biden in March 2022 to “work toward the goal of ensuring, until at least 2030, demand for approximately 50 billion cubic metres (bcm) of additional US LNG." At the time, the pact was struck on the basis that it was consistent with EU and US shared climate goals.
“We aim to reduce this dependency on Russian fossil fuels and get rid of it. This can only be achieved through... additional gas supplies, including LNG deliveries," EU Commission head Ursula von der Leyen said at a joint news conference with Joe Biden at the time.
Jorgensen’s new statements will help European buyers “clear the path forward” now, the report added, citing initial evidence of reluctance to sign deals with US suppliers past the 2030 deadline.
America’s LNG exports to EU member states surged more than twofold last year, reaching 56 bcm in 2022. Just a year before that, the shipped amount had been 22 bcm annually. There has been an echo of frustrated voices from some European politicians complaining that US LNG contracts are fraught with risks to the EU’s climate goals. But the reality is that US LNG companies are signing increasingly more long-term supply deals with Europe. Thus, America’s largest LNG exporter - Cheniere Energy - has struck a deal for two contracts with Europe-based Equinor and BASF to ship 2.55mn tons annually far into the 2040s.
In June, Venture Global LNG reportedly signed contract spanning 20 years to deliver 2.25mn tonnes annually to German state-owned company Securing Energy For Europe (SEFE).
7 September 2023, 21:09 GMT
Last year, Europe found itself plagued by soaring inflation caused by an energy crisis to a large degree of its own making as sanctions against Russia backfired. The US, European Union, and Britain imposed a swathe of economic restrictions against Russia. In December, when the EU adopted its ninth package of sanctions, it joined the G7 decision to
set a price cap on Russian oil at $60 per barrel. The cap was to be reviewed every two months to remain 5% below the International Energy Agency benchmark. Moscow, however, refused to accept the price limit, saying that Russian oil would only be sold to countries on a market basis.
The sanctions fed into a major fuel crunch in Europe, record-high inflation, and skyrocketing energy prices, leaving citizens of European countries forced to live on the brink of fuel poverty due to skyrocketing prices.
Meanwhile, Russia's economy
has overtaken Germany, UK and France despite Western sanctions. Furthermore, the
EU is set to import record volumes of
LNG from Russia this year, despite the bloc's target to abandon Russian fossil fuels by
2027, according to an August media report. At the end of the first seven months of this year,
Belgium and
Spain became the second and third largest buyers of Russian supercooled gas after
China, according to a Global Witness analysis.
10 August 2023, 17:52 GMT
