Liquified natural gas (LNG) industry stakeholders from the European Union and the United States have issued a joint statement in support of the European Commission’s RePowerEU plan and the US-EU Energy Security Taskforce on US LNG targets.
“The EU and US administrations have achieved a lot in response to Russia’s invasion of Ukraine,” commented Eurogas Secretary General, James Watson. “Alongside increased renewable gas, the EU will need new sources of natural gas to meet demand and keep Europe on track for coal and oil phase-out”.
In the statement industry representatives from both sides are calling for the prioritisation of climate ambition and investor certainty.
“Climate ambitions must be upheld, the suppliers and buyers agree to work together to reduce methane emissions and carbon emissions in the most effective way,” read the statement. “Our ambition is to have the cleanest gas possible delivered from the US. We will uphold the Methane Regulation rules laid down by the European administration and we encourage the US administration to bring forward a pragmatic approach to reduce the greenhouse gas emission impact of the LNG industry substantially within the next eight years.”
Mr Watson also stressed that climate ambition must not be side-lined.
“To deliver on energy security and climate goals, suppliers and buyers have committed to working together to deliver a pragmatic approach to reduce the greenhouse gas emissions of LNG by 2030,” he said.
Also, in response to efforts by the EU and US, including targets for an extra 15 billion cubic metres (bcm) of US LNG this year and 50 bcm per year by 2027, both parties outlined recommendations for overcoming bottlenecks. For example, they strongly believe that existing market instruments, including long-term contracts for LNG delivery, must continue to be supported by both administrations and the industry must be free to negotiate the terms that will ensure that the right amount of gas will be available at the right time for European consumers.
“Permitting of facilities (both liquefaction and regasification) and pipelines will need to be smooth and speedy to facilitate the quick development of US LNG destined for the EU, without undermining the environmental and safety standards of the respective parties,” continued the statement.
Finally, supportive policies must be quickly put in place in 2022 to make the increase in LNG deliveries from the US to the EU possible in the time frame set, as new LNG deliveries before 2030 mean that contracts need to be signed in 2023 and contracted volume is important for the investment decisions for additional LNG infrastructure.