US to ensure LNG supplies to Europe to terminate its dependence on Russian fossil fuels

By Trend

The United States will strive to ensure, including working with international partners, additional liquified natural gas (LNG) volumes for the EU market of at least 15 bcm in 2022 with expected increases going forward, Trend reports citing the EU Commission.

This is envisioned within the new agreements reached between the US and the EU to terminate EU dependence on Russian fossil fuels by 2027.

The United States and the European Commission will immediately establish a joint Task Force on Energy Security to set out the parameters of this cooperation and execute its implementation. The Task Force will be chaired by a representative from the White House and a representative of the President of the European Commission.

This Task Force will focus on the following urgent issues:

• The United States will strive to ensure, including working with international partners, additional liquified natural gas (LNG) volumes for the EU market of at least 15 bcm in 2022 with expected increases going forward.
• The United States and European Commission will undertake efforts to reduce the greenhouse gas intensity of all new LNG infrastructure and associated pipelines, including through the use of clean energy to power onsite operations, the reduction of methane leakage, and the construction of clean and renewable hydrogen ready infrastructure.
• The United States commits to maintaining an enabling regulatory environment with procedures to review and expeditiously act upon applications to permit any additional export LNG capacities that would be needed to meet this emergency energy security objective and support the RePowerEU goals, affirming the joint resolve to terminate EU dependence on Russian fossil fuels by 2027.
• The European Commission will work with the governments of EU Member States to accelerate their regulatory procedures to review and determine approvals for LNG import infrastructure, to include onshore facilities and related pipelines to support imports using floating storage regasification unit vessels, and fixed LNG import terminals.
• The European Commission will work with EU Member States and market operators to pool demand through a newly established EU Energy platform for additional volumes between April and October 2022. The European Commission will also support long-term contracting mechanisms and partner with the U.S. to encourage relevant contracting to support final investment decisions on both LNG export and import infrastructure.
• The European Commission will work with EU Member States toward ensuring stable demand for additional U.S. LNG until at least 2030 of approximately 50 bcm/annum, on the understanding that the price formula of LNG supplies to the EU should reflect long-term market fundamentals, and stability of the cooperation of the demand and supply side, and that this growth be consistent with our shared net zero goals. In particular, price formula should include consideration of Henry Hub Natural Gas Spot Price and other stabilising factors.
• The EU is preparing an upgraded regulatory framework for energy security of supply and storage. This will enhance certainty and predictability regarding security of supply and storage needs and ensure closer cooperation within the EU and its neighbouring partner nations. The European Commission has proposed regulation on energy storage to ensure that the existing storage infrastructure is filled up to 90% of its capacity by 1 November each year, with specific phase-in provisions for 2022. The European Commission will coordinate with the Member States and provide transparency with respect to available LNG capacity in EU terminals.
• The United States and the European Commission will engage key stakeholders, including the private sector, to formulate immediate recommendations that will reduce overall gas demand through accelerating market deployment and utilization of clean energy technologies and measures in Europe and the United States such as:
• Partnering on technologies and energy efficiency solutions such as ramping up demand response devices (such as smart thermostats) and heat pump deployment and installations, scaling procurement for clean energy equipment, investing in innovative technologies and fuel-switching away from fossil fuels.
• Expediting planning and approval for renewable energy projects and strategic energy cooperation including in offshore wind technologies.
• Developing a strategy to accelerate workforce development to support the rapidly deployment of clean energy technologies, including an expansion of solar and wind.
• Collaborating to advance the production and use of clean and renewable hydrogen to displace unabated fossil fuels and cut greenhouse gas emissions, including by investing in technology development and supporting infrastructure.
• The European Commission is working to advance measures that reduce gas consumption by maximizing renewable energy generation and utilization, including by reducing curtailment rates.
• The United States and the European Commission are resolved to negotiate and then implement an ambitious emissions-based Global Arrangement on Steel and Aluminum Trade that incentives industrial decarbonization and lowers energy demand.

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