American Oil and Gas Reporter - March 2022 - 27

E.U. Energy Commissioner
Acknowledges U.S. LNG
More Than A Short-Term Fix
As Europe undergoes one of its worst energy crises in
decades, European Union Commissioner for Energy Kadri
Simson traveled to Washington in February to meet with key
U.S. officials as a show of strength and unity between Europe
and the United States to address the energy challenges ahead.
Commissioner Simson, along with EU High Representative
Josep Borrell Fontelles, headed the EU delegation at the ninth
EU-U.S. Energy Council chaired by U.S. Secretary of State
Antony Blinken. The council underscored that it intended to
work together to ensure that liquified natural gas markets would
be robust enough to provide the additional capacity and flexibility
needed to compensate for any pipeline gas disruption as countries
sought to move away from fossil fuels to meet their " net zero "
greenhouse gas targets.
In response to the then-looming threat of military conflict
between Ukraine and Russia in eastern Europe, the council
reaffirmed Ukraine's position as a strategic gas transit country
and the body discussed " intensifying cooperation in the short
term (between the European Union and United States) to ensure
sufficient energy supplies for the European Union and its neighborhood. "
The ninth meeting of the council left no doubt about
the importance of strong U.S.-EU ties for European energy
security both to overcome the short-term disruptions caused by
geopolitical conflict, but also long-term ones as the continent
transitions to clean sources of energy.
The Independent Petroleum Association of America and the
Natural Gas Council wrote to President Joe Biden in February
with an offer of the natural gas industry's support and collaboration
with the administration to leverage our domestic natural gas resources
to meet the energy needs of our European allies and
trading partners while continuing to provide the affordable and
reliable energy on which Americans rely.
" Our industry's ability to support Europe during this crisis
is no accident. It was enabled by American innovation and
federal and state policies that welcomed natural gas infrastructure
investment, " the letter states. " Our domestic shale
revolution and private investment in U.S. natural gas infrastructure
has allowed our nation to lead the world in LNG exports-exports
that have a lower emissions intensity than many
of Europe's other suppliers.
" However, the United States is not immune to future challenges-like
those now facing Europe-if we are unable to
continue growing and modernizing our natural gas system.
Europe has discouraged natural gas development in recent years
and the consequences are now clear-restricting natural gas
threatens energy affordability and reliability in the near term
and hinders climate goals in the long term. "
While in the United States, Commissioner Simson also attended
a conversation at the Centre for Strategic and International
Studies titled " The Future of European Energy. " During
the discussion, Simson touched heavily on U.S. LNG exports.
In January the United States was Europe's top natural gas
supplier, he noted, observing " The United States has helped
" This is a crucial point worth underscoring.
Although global LNG analysts often cite
Europe's lack of storage capacity, Europe does
have the existing infrastructure, ports and
pipelines in place to transit LNG imports as a
means of meeting the continent's demand.
"
us a lot since December and January; we have received lots
of LNG cargoes that have helped us replace the missing
pipeline volumes. "
Simson also outlined Europe's solid position as a market for
importing U.S. LNG into its energy market. " All across Europe,
we have LNG terminals, which is a commodity that you can
trade freely and gives us some flexibility, " he detailed. " It has
helped us already to compensate for the decrease in pipeline
flows from our major supplier Russia. "
This is a crucial point worth underscoring. Although global
LNG analysts often cite Europe's lack of storage capacity,
Europe does have the existing infrastructure, ports and pipelines
in place to transit LNG imports as a means of meeting the continent's
demand.
When speaking to Europe's climate and net zero ambitions,
Simson cited the European Union's commitment last summer
to cut GHG emissions by at least 55% by 2030, a hugely
ambitious undertaking. It was during this discussion that Simson
stated that Europeans " know we will need LNG as a fuel during
our transition period, " in part because it will take decades to
achieve full decarbonization of a continent of more than half a
billion people. For LNG as a transition fuel in particular, this
reaffirms its place as a long-term fuel source for Europe and underscores
EU-U.S. energy relations are stronger than ever. ❒
JEFF ESHELMAN is chief operating
officer of the Independent
Petroleum Association of America
and the founder/executive vice
president of Energy in Depth.
Along with more than two decades
at IPAA, he previously worked at
the Defense Logistics Agency, the
White House Office of National
Drug Control Policy and three
public affairs firms.
MARCH 2022 27
American Oil and Gas Reporter - March 2022

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