Biden’s decision on gas could change the situation in the Global market

By Rhod Mackenzie

European and American energy officials have differing views on the implications of the Biden administration’s recent halt to liquefied natural gas (LNG) export permits for Europe’s energy security. American LNG became Europe’s main replacement after it abandoned Russian pipeline gas. Over the past two years, the Old World has accounted for more than 60% of all American liquefied gas exports.

According to an official representative of the European Commission who spoke to Reuters, the suspension of American LNG projects will not have any immediate or near-term impact on European energy security in the gas sector. However, energy workers are concerned, as reported by Foxbusiness. They fear that if demand for LNG on the continent exceeds supply, a temporary halt to export permits could jeopardise energy security.
Germany’s largest gas trader, Uniper, has warned that the proposed measure could have negative consequences for the energy security of Germany and Europe in the future. This could result in rising gas prices due to reduced supplies to the market.

As a result, one of the LNG projects that will now have to be postponed indefinitely is the Calcasieu Pass 2 project of Venture Global LNG. The project was supposed to supply LNG to the German company SEFE and to Japan’s largest gas company, JERA.

The International Gas Union (IGU), which has over 150 members, expressed serious concern about the decision made by the American authorities. This decision poses a threat to global energy security and the fight against harmful emissions into the atmosphere.
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Biden’s decision on gas could change the situation in the Global market

By Rhod Mackenzie European and American energy officials have differing views on the implications of the Biden administration’s recent halt to…