ECONOMY

Tue 04 Apr 2023 8:35 pm - Jerusalem Time

Washington pledges to export more than 50 billion cubic meters of gas to the European Union in 2023.

The United States and the European Union confirmed on Tuesday that they want to maintain "high levels" of liquefied natural gas shipments to the Europeans in 2023, the doubling of which last year contributed to reducing the dependence of the twenty-seven countries on Russia in the field of hydrocarbons.


US Secretary of State Anthony Blinken said during a meeting with European Union foreign policy chief Josep Borrell that Washington and Brussels "worked in an unprecedented way to strengthen Europe's energy security," in the wake of the invasion of Ukraine.


The United States exported about 56 billion cubic meters of liquefied natural gas to the European Union in 2022, compared to 22 billion in 2021, an increase of 140 percent, according to Blinken.


In a joint statement, the European Union and the United States pledged to "work to maintain high levels of US LNG supplies to Europe in 2023, at least 50 billion cubic meters."


"This is a necessary step in light of the difficult supply situation and the need to ensure that reservoirs are filled in preparation for the 2023-2024 winter," the statement added.


Brussels reported on Tuesday that the level of European gas stocks is currently at 56 percent, in line with its expectation of around 50 percent at the end of winter, a level nearly double what reservoirs normally hold at this time of year.


European Union member states plan to fill their reservoirs by 90 percent by November.


A US State Department official said Tuesday's talks were marked by "a sense of relief" after it became clear that "(Russian President Vladimir) Putin's efforts to militarize energy have failed."


He added that "things moved faster than expected in terms of reducing the European Union's dependence" on Russian gas.


"I think this is not a temporary situation, but rather a structural change for the future of energy and trade orientation in Europe," said EU Energy Commissioner Cadre Simpson.


Regarding the price that Europe pays to buy American gas, the Commission indicated in November that its energy working group, which it established with Washington, aims to "guarantee supplies and fill reservoirs in 2023 at prices that reflect economic fundamentals."


In addition to diversifying sources of supply, the Europeans are trying to reduce their demand: gas consumption in the EU fell by 19 percent between August and January, compared to levels between 2017 and 2022, exceeding the 15 percent target set by member states.

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Washington pledges to export more than 50 billion cubic meters of gas to the European Union in 2023.

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