U.S. Agrees to Ramp Up LNG Exports to Europe, Actively Reduce Natural Gas Demand
The Biden administration and the European Commission launched a multi-pronged effort that will dramatically ramp up U.S. liquefied natural gas (LNG) exports to the European Union (EU) but also reduce overall natural gas demand in the U.S. and EU through “accelerated market deployment” of clean energy measures.
The measures are part of strategic energy cooperation between the U.S. and EU under a joint “Task Force on Energy Security,” which President Joe Biden and European Commission President Ursula von der Leyen unveiled on March 25. According to the White House, the joint task force will work “to ensure energy security for Ukraine and the EU in preparation for next winter and the following one, while supporting the EU’s goal to end its dependence on Russian fossil fuels.”
Meeting EU LNG Demand with Urgency
The initiative’s launch follows pivotal developments over the past weeks that have shaken up the EU’s long-term fuel supply prospects. Since September 2021, Europe has fielded an acute post-pandemic energy crisis stemming from a “perfect storm” of factors, including a sharp rebound of Asian demand for LNG, various supply constraints, and climate-conscious cuts to upstream investments.…
