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EU strikes deal to buy gas from US

  • By Al Mayadeen Net
  • Source: Agencies
  • 25 Mar 2022 18:49
  • 1 Shares
2 Min Read

The European Union decides to buy gas from the United States, covering only a fraction of Europe’s energy demand.

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  • EU strikes deal to buy gas from US
    EU strikes deal to buy gas from US

The EU's move to buy gas from the United States aims to reduce Europe’s dependence on Russian energy. The European Union's agreement aims to buy at least 15 billion cubic meters of liquefied natural gas (LNG) more from the US this year to lower its dependence on Russian natural gas, reported Bloomberg. However, it is worth noting that American imports would cover just a fraction of Europe’s energy demand.

The agreement is likely to be officially announced later on Friday by US President Joe Biden and European Commission President Ursula von der Leyen.

The parties agreed to organize a dedicated working group to monitor Europe's energy needs. According to sources, the agreement also calls for increased US LNG shipments in 2023.

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The United States has already blocked Russian energy imports, and the United Kingdom has stated that it would follow suit by the end of the year. However, European countries have not established common ground on the topic, with many concerned that energy costs could surge any higher after already hitting a record earlier this month.

Prices soared after Russia was sanctioned for launching a military campaign in Ukraine, raising concerns about gas supply interruptions. Qatar considers that replacing Russian gas is impossible.

Read more: 10 years to replace Russian energy supply: Ex-Texas oil regulator

Europe derives more than 40% of its total natural gas imports from Russia, having purchased over 155 billion cubic meters of gas in 2021. Meanwhile, last year's US LNG shipments to the EU totaled slightly more than 22 billion cubic meters.

US President Joe Biden stated on Thursday that his country would increase LNG deliveries by 15 billion cubic meters this year, but analysts say the US is already producing the commodity at full capacity, and that any additional gas to Europe would have to be taken from exports initially aimed for other buyers.

Meanwhile, Russia stated on Wednesday that it is set to change existing gas contracts and demand that states who imposed sanctions on the country should pay for the commodity in rubles.

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