Breaking the historic agreement between the United States and the European Union for the supply of liquefied natural gas in Europe. It will convert one-third of Russian gas imported from the United States

The United States and the European Union have signed a historic agreement to supply liquefied natural gas to Europe, according to a joint news conference in Brussels on Friday with US President Joe Biden and European Commission President Ursula von der Leyen.

The agreement aims to reduce the EU’s dependence on Russia’s natural gas, and to supply at least 15 billion cubic meters of U.S. gas by the end of this year and at least 50 billion cubic meters annually to European countries. For years, it will be one-third of annual imports from Russia.

Through this agreement, the European Union is committed to maintaining a steady demand for US gas until 2030.

The Atlantic partnership is stronger than ever.

In a world facing disruption, our unity upholds the fundamental values ​​and rules that our citizens believe in.

We stand firm against Russia’s brutal war.
https://t.co/EbO9c3R7Mt

– Ursula von der Leyen (ondvonderleyen) March 25, 2022

Joe Biden reports:

• We have taken important steps to provide clean energy to help Europe reduce Russia’s gas dependence. We will reduce Russian gas imports to the United States. As the EU continues to abandon Russian gas, the European Commission will work with the United States to create additional infrastructure for access to gas.
• It is important to do this without conflicting with global warming. This must be done in accordance with climate regulations and to create the infrastructure for clean, green energy. The United States and the European Union will work together to reduce Russia’s dependence on gas (…). Security is another important issue on our agenda. We ensure that our citizens are safe based on data, that we compete together for a prosperous digital economy, and that the United States and the European Union work together on a plan to unite our economies because we share the same values. All of these can lead to long-term commitment. This war has brought the United States and the European Union closer together.

Reports by Ursula van der Leyen:

• The Atlantic alliance is stronger than ever, and this war is a strategic defeat for Vladimir Putin. Our obstacles bring him to the limit of patience. We are constantly advancing to solve unprecedented problems (…). The world has an unprecedented challenge, which is why it is important to focus on bringing refugees together, more than 3 million have left Ukraine, half of them children.
• We want to diversify gas imports into the United States
• We have an agreement with the United States to supply at least 15 billion cubic meters of liquefied natural gas to the European Union this year, and at least 50 billion cubic meters annually by 2030. That is, one-third of the gas purchased annually. Russia.
• We have reached an agreement in principle between the United States and the European Union on digital data transfer

The deal comes after Brussels’ diplomatic tour: the NATO summit, the G7 summit, the Council of Europe summit – all with the participation of US President Joe Biden.

On Thursday night, Presidents Biden and Ursula von der Leyen signed a joint statement on the Russian invasion of Ukraine and its effects on the EU, one of the points of the document is to ensure Europe’s energy security.

Full text of the US-EU Declaration:

Introduction

The United States and the European Commission are committed to reducing Europe’s dependence on Russia’s energy. We reaffirm our collective commitment to accelerate the global transition to Europe’s energy security and sustainability and clean energy. We strongly condemn Russia’s aggression against Ukraine and express our solidarity and support for Ukraine. We share the intent of addressing the energy security emergency – to ensure energy supply to the EU and Ukraine. We welcome Ukraine’s continued progress towards physical integration with EU energy markets. Energy security and stability of the European Union and Ukraine are essential for peace, freedom and democracy in Europe.

Through joint European action (REPowerEU) for more affordable, safe and sustainable energy, the European Union has reaffirmed its goal of achieving independence from Russian fossil fuels by the end of the decade, replacing them with sustainable, affordable, reliable and clean energy supplies. For EU citizens and businesses.

The United States and the European Union have pledged to achieve the goals of the Paris Agreement and to keep the temperature range within 1.5 degrees Celsius, including rapid clean energy conversion and renewable energy, to reach the target of zero zero emissions by 2050. , And energy efficiency. These policies and technologies will also contribute to the EU’s independence from Russian fossil fuels. Natural gas is an important component of the EU energy system in green transition, including ensuring that its carbon intensity decreases over time.

The United States and the European Commission confirm our strategic energy cooperation for the security of the energy supply and the reduction of dependence on fossil fuels. We share efforts to provide sustainable, affordable, reliable and clean energy supplies to the citizens and businesses of the European Union and its neighbors. In this framework, we establish immediate cooperation to address the emergency energy conservation objective of ensuring adequate gas storage prior to next winter and the following. We will continue our close cooperation in other activities such as accelerating green energy conversion, reducing energy consumption and reducing dependence on fossil fuels.

Working Group on Energy Conservation

The United States and the European Commission will immediately establish a Joint Working Group on Energy Security to set the parameters for this cooperation and implement it. The task force will be chaired by a representative of the White House and the President of the European Commission.

This working group will focus on the following urgent issues:

• The United States will seek to ensure that additional liquefied natural gas (LNG) emissions of at least 15 pcm into the EU market by 2022 work with international partners.
• The United States and the European Commission are working to reduce the greenhouse gas emissions of all new LNG infrastructure and related pipelines, including the use of clean energy for onsite operations, methane leakage, and clean and renewable hydrogen construction. Infrastructure ready.
• The United States is committed to maintaining a regulatory environment with procedures in place to allow additional export LNG capabilities required to meet this emergency energy conservation objective and support RePowerEU goals, and to review applications and act expeditiously. Dependence on Russian fossil fuels by 2027.
• The European Commission, in conjunction with the governments of the EU member states, to review and determine approvals for LNG import infrastructure and to expedite their regulatory procedures, including coastal facilities and related pipelines to support imports using floating storage restoration unit vessels and standard LNG import terminals.
• Between April and October 2022, the European Commission will work with EU member states and market operators to mobilize demand for additional modules through the newly established EU Energy Platform. The European Commission will support long-term agreement mechanisms and partner with the United States for related incentives. Agreement to support final investment decisions in both LNG export and import infrastructure.
• Based on the understanding that the pricing formula of LNG supplies to the EU should reflect long-term market fundamentals, the European Commission will work with EU member states to ensure sustainable demand for additional US LNG of approximately 50 bcm / year until at least 2030. The stability of the demand and supply side collaboration and this growth will be in line with our shared net zero targets. In particular, the pricing formula should take into account the Henry Hub Natural Gas spot price and other stabilizing factors.
• The EU is developing an improved regulatory framework for the energy security of supply and storage. It will enhance commitment and foresight on the security of supply and storage needs and ensure closer cooperation within the EU and its neighbors. The European Commission has proposed regulation on energy conservation to ensure that the existing storage infrastructure is filled to 90% of its capacity by November 1 of each year, with specific phase-by-year regulations for 2022. Provide transparency regarding LNG capabilities available at EU terminals.
• The United States and the European Commission should make immediate recommendations to key stakeholders, including the private sector, who will reduce overall gas demand through market deployment and the use of clean energy technologies.
• Integration of technologies and energy efficiency solutions such as on-demand response devices (such as smart thermostats) and heat pump deployment and installation, calibration purchases for clean energy equipment, investment in innovative technologies and conversion of fuel from fossil fuels.
• Accelerate planning and approval for renewable energy projects and strategic energy cooperation, including offshore wind technologies.
• Develop a strategy to accelerate staff growth to support clean energy technologies that can be used quickly, including the expansion of solar and wind.
• Collaborate to promote the production and utilization of clean and renewable hydrogen to replace unrestricted fossil fuels and reduce greenhouse gas emissions, including investing in technological development and infrastructure support.
• The European Commission is working to reduce gas consumption by increasing renewable energy production and utilization, including reducing reduction rates.
• The United States and the European Commission have negotiated and then decided to implement an ambitious emission-based global arrangement in the steel and aluminum trade that will promote industrial carbonisation and reduce energy demand.

Photo: Brendan Smylovsky / AFP

Letter from Brussels