In a bid to reduce dependency on Russian fossil fuels, the E.U. will get 15 BCM more LNG from U.S.A.
The European Union (E.U.) and United States (U.S.) are set to announce a deal where U.S. will supply 15 Billion Cubic Metres (BCM) more Liquefied Natural Gas (LNG) to E.U., thereby reducing the bloc’s dependency on Russian energy.
The promise was made by the President of the US – Joe Biden during the E.U. Leader Summit in Brussels on Thursday, March 24, 2022. The U.S. will further increase the energy supply to E.U. in 2023. But since U.S. LNG plants are already producing at full capacity, most of the additional gas going to Europe would have to come from exports that would have gone to other countries.
Russia is E.U.’s top gas supplier, sending a total 155 BCM of gas to the E.U. in 2021. Owing to Russian invasion of Ukraine, E.U. has pledged to cut Russian gas use by 2/3rd this year by hiking imports from other countries and quickly expanding renewable energy.
Quoting the President of European Commission – Ursula von der Leyen, the European Commission tweeted,
EU_Commission: "We will step up our support for Ukraine. Sharpen the sanctions against Russia. And break free from Russian fossil fuels".
— LaC Med (@LaCMediterraneo) March 25, 2022
Doorstep by President @vonderleyen ahead of #EUCO summit. pic.twitter.com/7Z8CLZoyxC
Russia, which is facing international financial sanctions said that “unfriendly” countries, including E.U. Member States, who want Russian oil and gas, must start paying in Russian Roubles. The E.U. Member States have criticised their condition of Russia.
Speaking on the occasion, the Chancellor of Germany – Olaf Scholz said, “There are fixed contracts everywhere, with the currency in which the deliveries are to be paid being part of these contracts. In most cases it says euros or dollars, this is the basis we are working on.”
The Prime Minister of Slovenia – Janez Jansa said, “Nobody will pay in roubles.”
The E.U. leaders are due to agree on second day of E.U. Leader’s Summit, i.e., Friday, March 25, 2022 to work together on the joint purchase of gas, LNG and hydrogen” ahead of next winter and coordinate filling gas storage.” This aims to build up a supply buffer of non-Russian gas. The European Commission would lead negotiations pooling demand and seeking gas, following a model the bloc used to buy Coronavirus (COVID-19) vaccines.
However, the bloc is divided on whether to sanction Russian oil and gas directly. An E.U. embargo would require unanimous approval from all 27 Member States. Germany, Hungary, Latvia and Poland want to stop dependence on Russian energy.
