WASHINGTON: The US has stepped up its export of natural gas to its European allies to support their energy security needs, with the majority going to France, Britain, Spain and the Netherlands.
This is according to Brad Crabtree of the Office of Fossil Energy and Carbon Management at the US Department of Energy, who was speaking during a briefing on Monday. The exports are part of long-term contracts to support EU nations, he said.
He said the US, as the world’s top producer and exporter of natural gas, plays a key role in helping European countries diversify their energy supplies, which would allow them to sustain their economies and maintain social and political stability.
Crabtree said US LNG exports reached a high of 122 billion cubic meters per year in March. It is expected to reach 132 billion by the end of this year, 153 billion in 2024, and roughly 204 billion per year by the end of the decade.
“We are prepared to do everything we can to advance global energy security over the next few years, and so in that context I’d like to clear up what are some misconceptions which have gained attention here in Europe,” he said.
This past summer, European countries struggled to maintain adequate natural gas supplies because of the war in Ukraine, which also caused an increase in prices. With large supplies coming from the US, European countries were able to mitigate the economic and political impact of shortages.
Crabtree said the US government has not held back on supporting its allies and have already authorized exports to the EU totaling four times current levels, to 490 billion cubic meters.
He added that the US has approved four applications for American exports on the Gulf Coast, and has completed environmental reviews for two planned terminals in Mexico that would further bolster supply.
Crabtree rejected accusations from some quarters in Europe that US producers were taking advantage of European need or engaged in market manipulation and price gouging. “These assertions are blatantly false,” he said.
He said the vast majority of US LNG produced and exported is subject to long-term contracts. This was a matter of public record and the US energy department publishes data monthly which shows that current export prices remain close to domestic levels.
He attributed the high prices in Europe to energy traders who hold the long-term contracts and derive benefit from the high margins.
Crabtree said the US government remains committed to decarbonization and reducing greenhouse gases, and is aligned with EU objectives to reach net-zero emissions by the middle of the century.
He said the administration of US President Joe Biden is committed to responsible and sustainable natural gas production, transport, domestic use and export. This can be attested by the recent passing of groundbreaking energy and climate change legislation in the US Congress.
He added that the US federal government is providing funding for long-term clean energy initiatives, which includes financial incentives for the private sector to invest in projects that supports decarbonization and clean energy.
“We are getting our own house in order in the US with respect to federal climate policy,” he said.