EU signs big deal with US to limit dependence on Russian energy

Under the deal, the US will provide the EU with at least 15 billion cubic meters of additional fuel – or liquefied natural gas – by the end of the year.

A source close to the agreement said that the agreement also included that the US would export more LNG to the EU in 2023. However, because US LNG plants are operating at full capacity, analysts said. , most of the additional gas going to Europe will come from exporters that would otherwise be exporting to other parts of the world.

Russia is Europe’s top gas supplier, delivering 155 billion cubic meters of gas to the EU in 2021. Most of that is via pipelines and 15 billion cubic meters is LNG. US LNG exports to Europe topped with 22 billion cubic meters last year. US exporters have shipped record volumes of LNG to Europe for three consecutive months, with prices here having increased tenfold from a year ago.

The EU also said it would cut off the use of Russian gas in response to Russia’s special military operation in Ukraine. This also means that the EU will have to increase imports and produce more renewable energy.