Author of the article:

Reuters

Reuters

Jarrett Renshaw and Vera Eckert and Joseph Nasr

BRUSSELS/BERLIN — The United States will work to give 15 billion cubic meters (bcm) of liquefied natural gas (LNG) to the European Union this three hundred and sixty five days to back wean it off Russian gas offers, the transatlantic partners mentioned on Friday.

The EU is aiming to decrease its dependency on Russian gas by two-thirds this three hundred and sixty five days and discontinue all Russian fossil fuel imports by 2027 attributable to Russia’s invasion of Ukraine. Russia offers around 40% of Europe’s gas desires.

Concerns over security of supply had been bolstered this week after Russia ordered the change of gas contract payments to roubles, elevating the possibility of a supply squeeze and even better prices.

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U.S. LNG vegetation are producing at stout capability and analysts suppose most of any extra U.S. gas sent to Europe would need to approach from exports that can devour gone in assorted areas and already high European gas prices would need to upward thrust extra to entice these cargoes to the 27-nation bloc.

LNG below contract can’t be with out pains redirected.

“It in general takes two to about a years to produce a brand new manufacturing facility, so this deal might maybe maybe per chance per chance very smartly be more referring to the re-route of existing offers than new capability,” mentioned Alex Froley, gas and LNG analyst at ICIS.

Senior U.S. administration officers did no longer specify what quantity or percentage of the extra LNG supply would approach from the US.

Even though the 15 bcm is achievable, “it silent falls smartly in need of replacing Russian gas imports, which amounted to around 155 bcm in 2021,” analysts at ING Bank mentioned.

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GERMAN RELIANCE ON RUSSIA

U.S. President Joe Biden and European Commission President Ursula von der Leyen also announced a belief to get a job pressure to decrease Europe’s reliance on Russian fossil fuels.

The Commission will also work with EU countries to be definite they are in a living to receive about 50 bcm of further LNG till no no longer up to 2030, the factsheet equipped by the White Home mentioned.

It became unclear whether it referred to amounts extra to final three hundred and sixty five days’s 22 bcm of U.S. exports to the EU.

The EU has already stepped up efforts to fetch more LNG after talks with seller countries, ensuing in file deliveries of 10 bcm of LNG in further than 120 vessels in January.

In the meantime, Germany, the EU’s biggest importer of Russian gas, mentioned it has made “significant growth” towards lowering its exposure to imports of Russian gas, oil and coal.

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Nevertheless, Economic system Minister Robert Habeck also mentioned it might maybe maybe most likely per chance per chance purchase till the summer season of 2024 for Europe’s finest financial system to wean itself off of Russian gas.

German utilities on Thursday mentioned their country wanted an early warning procedure to model out gas shortages as Putin’s seek details from for gas payments in roubles left corporations and EU worldwide locations scrambling to know the ramifications.

Some countries, similar to Italy, mentioned they would proceed to pay in euros. The CEO of Poland’s PGNiG, mentioned the company – which has a contract with Gazprom till the discontinue of this three hundred and sixty five days – might maybe maybe per chance per chance no longer simply change to paying in roubles.

Russia’s seek details from for price in roubles for gas silent desires to be backed by a concrete mechanism.

A spokesman for Germany’s Uniper mentioned on Friday: “We devour no longer acquired any legit notification or seek details from to process the settlement in roubles.”

The German financial system minister mentioned the authorities will seek the advice of with its partners about Putin’s seek details from for price in roubles.

(Reporting by Jarrett Renshaw in Brussels, Joseph Nasr in Berlin, Vera Eckert in Frankfurt, Nina Chestney and Marwa Rashad in London; writing by Philip Blenkinsop and Nina Chestney; modifying by Barbara Lewis and Jason Neely)

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