Don't Forget America's LNG: Key Player in Europe's Energy Resilience
Mark Green
Posted May 16, 2024
It’s important to remember that American liquefied natural gas (LNG) was significant in Europe avoiding the worst of an energy crisis after Russia invaded Ukraine in 2022. Memories can be short or foggy (or both), and sometimes it can affect policy.
After the Biden administration’s decision to stop authorizing new and pending LNG permits to non-Free Trade Agreement countries – making less certain America’s LNG supply to Europe and others – it’s worth revisiting the way U.S. LNG suppliers came to the rescue in 2022.
Indeed, an otherwise good Financial Times article (subscription required) – “How Europe fixed its Russian gas problem” – examines how the continent coped with reduced natural gas flows from Russia, but doesn’t give enough credit to American LNG for lessening Europe’s pain.
Similarly, the Biden administration should not minimize LNG’s importance to America’s allies in the effort to justify its LNG pause. Some points API made in a letter to the editor of the Financial Times:
- While the breadth of Europe’s response to Russia’s energy maneuverings is worth coverage, so, too, is the response of America’s LNG suppliers.
- U.S. producers increased shipments to Europe 119% in 2022, compared to 2021 (when the European Union received 45% of its imported natural gas from Russia).
- The benefits of American LNG aren’t just economic: U.S. LNG offers an opportunity for European Union members to reduce emissions from the power sector – as the U.S. has done because of increased use of natural gas – and meet environmental commitments.
- Europe’s natural gas needs continue in the short and long term, as a recent analysis showed, and the U.S. is well-positioned to help prevent supply gaps.
Here’s the full letter, in case you’re blocked by a paywall.
These points help explain why many in Europe were dismayed at America’s LNG pause. They remember how LNG from America provided immediate relief and stabilization for natural gas and electricity prices in Europe for consumers, countering decreased supply from Russia.
U.S. policymakers should remember, too.
About The Author
Mark Green joined API after a career in newspaper journalism, including 16 years as national editorial writer for The Oklahoman in the paper’s Washington bureau. Previously, Mark was a reporter, copy editor and sports editor at an assortment of newspapers. He earned his journalism degree from the University of Oklahoma and master’s in journalism and public affairs from American University. He and his wife Pamela have two grown children and six grandchildren.