US to increase supplies of natural gas to EU to reduce reliance on Russia for energy
The US and EU announced a joint task force that will increase supplies of liquified natural gas to reduce European dependence on Russian gas and fossil fuels.
President Joe Biden and European Commission President Ursula von der Leyen announced the forging of the joint task force that aims to strengthen European energy security in the wake of Russia's military offensive in Ukraine.
The Task Force for Energy Security will be chaired by a representative from the White House and a representative of the President of the European Commission, the White House said in a statement on Friday. It aims to ensure energy security for Ukraine and the EU in advance of next winter and the following one.
The task force aims to diversify LNG supplies in alignment with climate objectives and reduce demand for natural gas. The US will ensure additional LNG volumes for the EU market of at least 15 billion cubic metres (bcm) in 2022, with expected increases going forward.
"The US and the European Commission will undertake efforts to reduce the greenhouse gas intensity of all new LNG infrastructure and associated pipelines, including through using clean energy to power onsite operations, reducing methane leakage, and building clean and renewable hydrogen-ready infrastructure," the statement said.
Russia is the world's second-largest energy exporter. It accounts for about 10 per cent of the world’s energy output, including 17 per cent of its natural gas and 12 per cent of its oil. It supplies about 40 per cent of Europe's gas, while Russian crude accounts for about 3 per cent of US oil imports, equal to about 200,000 barrels a day. Russian imports account for 8 per cent of total UK oil demand.
The European Commission will work on upgrading regulatory framework for energy security of supply and storage, as well as working with EU member states to accelerate regulatory procedures to review and determine approvals for LNG import infrastructure.
The US and the European Commission will work key stakeholders, including the private sector, to immediately implement recommendations to reduce overall gas demand by accelerating market deployment of clean energy measures.
The White House said immediate reductions can be achieved by ramping up demand response devices, including smart thermostats, and deployment of heat pumps. Reductions through energy savings in homes can replace 15.5 bcm this year, while accelerating wind and solar deployment can replace 20 bcm in 2022 and the EU’s existing plans can contribute to saving 170 bcm a year by 2030.
"We will continue to collaborate to advance the production and use of clean and renewable hydrogen to displace unabated fossil fuels and cut greenhouse gas emissions, which will include both technology and supporting infrastructure," the statement said.