How the US is helping Europe reduce its dependence on Russian gas
Europe is facing a serious energy crisis, as high gas prices and low storage levels threaten its economic recovery and energy security. The situation is worsened by the ongoing conflict between Russia and Ukraine, which could disrupt the transit of gas through Ukraine, a key route for European imports. Russia has also been accused of using gas as a political weapon, by withholding additional supplies to Europe and demanding higher prices.
To address this challenge, the US and the European Commission have announced a joint Task Force for Energy Security, which aims to reduce Europe's dependence on Russian fossil fuels and support its green transition. The Task Force will focus on two main goals: diversifying liquefied natural gas (LNG) supplies in alignment with climate objectives, and reducing demand for natural gas.
LNG is a form of natural gas that is cooled and compressed into liquid form, making it easier to transport and store. The US is already Europe's largest LNG supplier, and has pledged to work with international partners to ensure additional LNG volumes for the EU market of at least 15 billion cubic meters (bcm) in 2022, with expected increases going forward. The US and the European Commission will also undertake efforts to reduce the greenhouse gas intensity of all new LNG infrastructure and associated pipelines, by using clean energy to power onsite operations, reducing methane leakage, and building clean and renewable hydrogen-ready infrastructure.
The European Commission will prepare an upgraded 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 will maintain its regulatory environment with an emphasis on supporting this emergency energy security objective and the REPowerEU goals. The European Commission will also work with EU Member States toward the goal of ensuring, until at least 2030, demand for approximately 50 bcm/year of additional US LNG that is consistent with their shared net-zero goals.
Reducing demand for natural gas is another key strategy to enhance Europe's energy security and climate ambition. The US and the European Commission will engage key stakeholders, including the private sector, and deploy immediate recommendations to reduce overall gas demand by accelerating market deployment of clean energy measures. Immediate reductions in gas demand can be achieved through energy efficiency solutions such as ramping up demand response devices, including smart thermostats, and deployment of heat pumps. The REPowerEU plan estimates that reductions through energy savings in homes can replace 15.5 bcm this year and that accelerating wind and solar deployment can replace 20 bcm this year, and through EU’s existing plans such as “Fit for 55” contribute to the EU goal of saving 170 bcm/year by 2030.
The US-EU Task Force for Energy Security is a timely and welcome initiative that demonstrates the strong transatlantic cooperation on energy and climate issues. By diversifying LNG supplies and reducing gas demand, the Task Force can help Europe cope with the current energy crisis, while advancing its long-term goal of decarbonizing its economy.
References:
- https://www.eeas.europa.eu/eeas/europe%E2%80%99s-energy-security-and-eu-us-cooperation-%C2%A0_en
- https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/25/fact-sheet-united-states-and-european-commission-announce-task-force-to-reduce-europes-dependence-on-russian-fossil-fuels/
- https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/25/joint-statement-between-the-united-states-and-the-european-commission-on-european-energy-security/