Business News

Energy : the EU expects competitive pricing for purchase of LNG to u.s.

News_3
Written by credit

Brussels – The United States could become a strategic partner of the EU for its supplies of liquefied natural gas and to help it to no longer be dependent on Russia, provided that the practice of “competitive prices”, said Thursday the president of the european Commission Jean-Claude Juncker.

The european Union has bought $ 2.8 billion cubic meters of liquefied natural gas (LNG) in the u.s. in 2017. A drop in the face of huge needs of Europeans who import every year more than two-thirds (66%) of their consumption, that is, 360 billion cubic metres of gas, of which 55 billion cubic metres of LNG, for a bill of 75 billion euros, according to european statistics.

To this day, the Russian giant Gazprom covers 35% of the EU consumption and half of the purchases transits through Ukraine. Germany and Russia have undertaken to bypass Ukraine with the doubling of the gas pipeline Nord Stream through the Baltic sea.

The United States has decided to place in the supplies of gas to europe because “imports of liquefied natural gas to Europe should increase by almost 20 % by 2040 compared to the levels in 2016”, according to the international energy Agency.

Washington uses the strong way in order to achieve its purposes. The president, Donald Trump has demanded the abandonment of the project of doubling of Nord Stream, and forced the Europeans to withdraw from Iran, which has the largest gas reserves in the world after Russia, including the deposit off-shore Go South.

He finally obtained the commitment of the Europeans to buy more american gas in consideration of his consent to not to impose new customs duties on sedans exported by the Europeans.

But the european market is far from being achieved. The price of american gas are still far from being competitive due to its costs of production and transport, and explain the services of the european Commission.

The United States currently has a capacity of liquefaction of 28 billion cubic meters, to which should be added $ 80 billion cubic meters by 2023.

But they need to “remove the administrative formalities related to the export of liquefied natural gas,” said Jean-Claude Juncker following his meeting with Donald Trump on 20 August in Washington.

“U.s. law still requires that exports of liquefied natural gas to Europe are subject to regulatory authorization prior,” said the Commission.

The EU seeks to diversify its supply because its production decreases.

It develops new processing capabilities in the Adriatic sea, on the island of Krk, in Croatia, in the Baltic, in Poland, and in the Mediterranean sea, in Greece.

More than 40 tankers coming from the United States arrived in Europe since the beginning of the year 2016. They have docked in Spain, Italy, the netherlands, the United Kingdom, Malta, Poland and Portugal.

Spain, with six re-gasification terminals, is seen at the head of bridge for the LNG and american press to do the project STEP, the interconnection with the French network in order to be able to supply the rest of Europe.

About the author

credit

Leave a Comment