White House is 'revisiting' LNG issue that could give European leaders a 'headache'

The White House recently said it was reviewing the way it licenses natural gas exports, following pressure from environmentalists, a move that has rattled Europe's fragile energy sector.

US considers LNG exports, causing concern in Europe. (Source: Reuters)

Previously, thanks to increased exploitation in the Gulf of Mexico and the Atlantic coast, the US surpassed Qatar to become the world's largest exporter of liquefied natural gas (LNG).

The world's largest economy has also become a key supplier to Europe as the region seeks to reduce its consumption of Russian gas.

Five projects under construction that would double U.S. LNG production by 2026 are being developed off the southern coasts of Texas, Louisiana, Mississippi, Alabama and Florida, according to the U.S. Energy Information Administration. But the multibillion-dollar gas projects have been the target of criticism from climate activists who say reliance on fossil fuels is causing global warming.

The criticism comes as President Joe Biden is running for re-election as US President this year.

Therefore, consulting firm Rapidan Energy Group predicts that the US government is unlikely to issue any new LNG export licenses before the election.

This risks stalling projects that Europe relies on to meet its energy needs as the Russia-Ukraine conflict continues.

Politico commented: "The above development is the latest example of how US policy priorities - in this case reducing dependence on fossil fuels - can cause headaches for European leaders."

Since January 2022, US LNG exports to Europe have increased by about 8.7% per month, giving the region a "breather" as it sharply reduces imports of Russian gas.

Without US LNG, Europe's political support for Ukraine might have declined as its people struggled with power shortages.

To get through the two years after Russia cut off gas supplies, Europe had to cut consumption and switch to buying LNG, mostly from the US, said Tom Marzec-Manser, head of gas analysis at commodity information company ICIS.

The country supplied nearly 20% of total gas to the EU and UK last year, up from 5% in 2021.

“This is huge growth,” said Tom Marzec-Manser.

Source: https://baoquocte.vn/nha-trang-dang-xem-xet-lai-van-de-lien-quan-den-lng-co-the-khien-lanh-dao-chau-au-dau-dau-258574.html