US keeps LNG supplies to Europe at ‘high level’

The head of European diplomacy, Joseph Borrell, and the European Commissioner for Energy, Kadri Simpson, sat with US Secretary of State Anthony Blinken on Tuesday at the EU-US Council of Ministers’ meeting on energy.

The meeting marked the first anniversary of the creation of the Joint Energy Supply Task Force, launched by US President Joe Biden and European Commission President Ursula van der Leyen in March 2022, following Russia’s invasion of Ukraine in February.

140 percent increase

The US has pledged to deliver at least 15 billion cubic meters of additional liquefied natural gas (LNG) to the EU this year. The additional US supplies are part of a broader partnership aimed at reducing Europe’s dependence on Russian gas. Overall, the United States will export about 56 billion cubic meters of LNG to the EU in 2022, up from 22 billion in 2021, a 140 percent increase, Blinken said on Tuesday.

In a joint communique, the US and the EU continued on the same path, pledging to “maintain a high level of US LNG supplies to Europe by 2023 and maintain a minimum volume of 50 billion cubic meters”. A year ago it said the Europeans wanted to buy 50 billion cubic meters of additional US LNG supplies annually until 2030.

Gas reserves are more than half full

“This is necessary in view of the difficult supply situation and the need to replenish stocks for the winter of 2023-2024,” the joint statement said. European gas reserves are currently 56 percent full, Brussels said on Tuesday. That’s about 50 percent expected by the end of winter, and nearly double what’s normally expected for this time of year. 27 have set a target of filling their reserves to 90 per cent by November.

As for the price at which Europe buys US gas, the commission pointed out in November that the task force’s objective is to “ensure supply and replenishment in 2023 at prices that reflect economic fundamentals”.

In addition to diversifying its supply, Europe is trying to reduce its demand: gas consumption in the EU fell by 19 percent between August and January compared to the levels between 2017 and 2022, exceeding the 15 percent target set by the 27