EU and US gas sector leaders, represented by Eurogas and LNG Allies respectively, presented a set of recommendations met after discussing the additional 50 billion cubic metres (bcm) of Liquified Natural Gas (LNG) pledged in March 2022.
“While progress has been achieved, there is work to do to deliver tonnes of US LNG to replace Russian gas,” commented Didier Holleaux, President of Eurogas. “Policymakers on both sides of the Atlantic can support us in these efforts. We urgently need a framework to address key points such as reducing emissions and stabilising prices.”
“The US has an opportunity to support the EU through the energy crisis as Russia’s war against Ukraine continues,” added Fred H. Hutchison, President and CEO of LNG Allies. “Now is the time to remove red tape and offer real assistance to our European counterparts. Next winter will come far too quickly. We must move faster to contract volumes and prepare the necessary infrastructure, including for increasing volumes of natural gas, biomethane and eventually hydrogen.”
In particular, both organisations are asking for the support of policymakers on four different fronts. First, on reducing emissions, as both US suppliers and EU buyers are working together every day to reduce both methane and carbon emissions. Second, on stabilising the prices: “we need to trigger new investments in LNG infrastructure to deliver
and distribute the required additional volume, thereby ensuring stable and reasonable
prices in the medium-term,” read the statement. “We strongly believe that existing market instruments, (for example, long-term contracts for LNG delivery) must be supported by both administrations.”
Third, it is important to further develop the infrastructure: the speed with which new US volumes can enter the market will be crucial to stabilise EU energy prices. Finally, both associations are calling on delivering new gases such as biomethane, renewable natural gas and hydrogen.