. Verification: 8ea7dd8e8067cf6e

EU’s Shift to US LNG Raises Concerns Over Energy Security

The European Union's strategic move to replace Russian gas with liquefied natural gas (LNG) from the United STates has exposed the region's energy system to significant security risks, as reported by Bloomberg, drawing insights from industry experts.

Shifting Dynamics: US Emerges as Key Gas Supplier

In a transformative shift, the United States, having commenced its shale gas exports only in 2016, has rapidly become the EU's second-largest gas supplier, trailing only behind Norway. Notably, by 2023, the US claimed the title of the world's leading LNG exporter.

Precipitating Factors: A Surge in US LNG Purchases

The geopolitical landscape played a pivotal role in this transition, with many EU member states markedly increasing their LNG purchases in 2023. This surge followed disruptions in pipeline gas flows from Russia due to Ukraine-related sanctions and the sabotage of the Nord Stream pipelines in September 2022, rendering them non-operational.

Ongoing Concerns and Potential Risks

While European reliance on US LNG continues to grow, potential challenges and risks emerge on the horizon. Ira Joseph, a senior research associate at the Center on Global Energy Policy at Columbia University, underscores this point, stating that European dependency on US LNG could intensify unless RUssian gas reappears or Qatar refrains from engaging in a market share price war.

However, Joseph also highlights a crucial factor: changes in US policy pose a substantial risk. Recently, President Joe Biden issued a temporary pause on approving pending and future applications for LNG exports, citing concerns over climate change. This pause aims to provide the Department of Energy with the opportunity to update economic and environmental guidelines for approving new export licenses.

Biden's Policy Shift: A Potential Setback

President Biden's decision to temporarily halt LNG export approvals raises concerns among industry stakeholders. The move contradicts a prior commitment made to Brussels, where the White House pledged to swiftly review applications for new export capabilities after the EU's decision to reduce reliance on Russian energy supplies.

Fred Hutchison, president and CEO of LNG Allies, expresses disappointment, stating that Biden's announcement fails to uphold the earlier pledge. Energy Aspects gas analyst David Seduski suggests that the pause may be undone if the Republicans regain control of the White House.

EU's Stance and Analytical Insights

Despite concerns raised by industry experts, an unnamed senior EU official suggests that the European Commission remains unconcerned about the bloc's growing dependency on US LNG. The official argues that the political risks associated with Russia are not mirrored in the EU's relationship with the United States.

However, analysts caution about potential challenges ahead. Jonty Shepard, vice president of global LNG trading and origination at BP, previously warned about the concentration risk emerging from the growing reliance on US gas in the sector.

In conclusion, the EU's strategic shift towards US LNG presents both opportunities and risks, emphasizing the need for a nuanced approach to ensure energy security in the evolving geopolitical landscape.

Free Speech and Alternative Media are under attack by the Deep State. Real Raw News needs reader support to survive and thrive. 

Please do not give your hard-earned money to sites or channels that copy/paste our intellectual property. We spend countless hours vetting, researching, and writing. Thank you. Every dollar helps. Contributions help keep the site active and help support the author (and his medical bills)

Contribute to Real Raw News via  GoGetFunding