US, EU sign gas deal to reduce reliance on Russia
What's the story
The United States and the European Union (EU) on Friday unveiled a major deal that will help boost the supply of liquefied natural gas (LNG) to Europe. The announcement of the deal comes at a time when the bloc seeks to reduce its dependence on fossil fuel imports from Russia amid the latter's ongoing war with Ukraine. Here are more details.
Context
Why does this story matter?
The Russia-Ukraine war, which began on February 24, has pushed energy prices—which were already elevated even as economies began recovering from the effects of the COVID-19 pandemic—to record highs. Following Russia's invasion of Ukraine, the EU vowed to reduce dependence on Moscow by increasing imports from other nations and expanding renewable energy. Notably, the EU meets 40% of its gas needs through Russian supplies.
Details
Taking further, concrete steps in energy cooperation: US-EU joint statement
The pact was announced during US President Joe Biden's three-day Brussels visit. Apart from the deal, he and European Commission's President, Ursula von der Leyen, also discussed Russia's invasion of Ukraine and offered additional support to the latter. "We are taking further, concrete steps in our energy cooperation to ensure the security of supply and...reduce dependence on Russian fossil fuels," said their joint statement.
The deal
US to supply additional 15 bcm of LNG to EU
As part of the deal, the US will supply additional liquefied natural gas to the EU, which earlier in March pledged to cut down on Russian gas by at least two-thirds in 2022. The US will supply an additional 15 bcm (billion cubic meters) of LNG to the bloc by 2022-end and ensure about 50 bcm of additional gas supply per year until 2030.
Joint task force
Support to EU's goal to end dependence on Russia
The White House, in a fact sheet, said Biden and von der Leyen announced a joint task force to decrease "Europe's dependence on Russian fossil fuels and strengthen European energy security." This task force—comprising a White House representative and the European Commission president's representative—will "ensure energy security for Ukraine and the EU" and support "the EU's goal to end dependence on Russian fossil fuels."
Goals
The White House on primary goals of task force
The White House said the joint task force has two primary goals—diversification of LNG supplies to align with climate objectives and "reducing demand for natural gas" by accelerating "deployment of clean energy measures." It added, "The United States will work with international partners and strive to ensure additional LNG volumes for the EU...of at least 15 bcm in 2022, with expected increases going forward."