US gas deal to reduce Europe's reliance on Russia

The decision has been made after Moscow invaded Ukraine

Author: Danielle SaundersPublished 25th Mar 2022
Last updated 25th Mar 2022

The United States and European Union have announced a new partnership to reduce reliance on Russian energy.

It comes after Moscow’s invasion of Ukraine and is said to be the start of a years-long initiative to further isolate Moscow.

Almost 40% of the European Union's natural gas comes from Russia to heat homes, generate electricity and power industry.

The US and other nations will increase liquified natural gas exports to Europe by 15 billion cubic metres this year with larger shipments in the future, the White House said.

They will also try to power gas infrastructure with clean energy and reduce methane leaks that can worsen global warming.

According to the White House, although the initiative is likely to need new facilities to import liquified natural gas, the partnership aims to reduce reliance on fossil fuels long term through energy efficiency and alternative energy sources.

How much gas does the UK get from Russia?

For the UK, it is not a question of security of gas supply but more about high gas prices set by international markets, according to the government website.

The UK isn’t dependent on Russian gas supply like many European countries, our largest source of gas is from the UK Continental Shelf and most imports come from suppliers like Norway.

There are no gas pipelines directly linking the UK with Russia and imports from Russia made up less than 4% of total UK gas supply in 2021.

UK not reliant on Russian gas, but bills are expected to go up

The UK operates in international gas markets and as a result prices will be hit by any drop in global supply, meaning Britain’s energy bills could increase even further this year.

The government says, “It is vital European countries on the continent reduce their reliance on Russian gas both through alternative supplies, including the global liquefied natural gas (LNG) market – an increasingly important component of the global energy supply chain - and accelerating the transition to net zero.

“This is a priority for our engagement with key international partners and we continue to work alongside them to achieve this.”

Where is Joe Biden going next?

After leaving Brussels, Mr Biden travels to Rzeszow in Poland, where US troops are based roughly an hour's drive from the Ukrainian border.

He is expected to continue to Warsaw for talks on Saturday with Polish president Andrzej Duda.

Although the US has been dramatically increasing its exports in recent years, getting more liquefied natural gas to Europe could be difficult.

Many export facilities are already running at capacity, most new terminals are still only in the planning stages and according to the Centre for Liquefied Natural Gas, most US shipments already go to Europe.

"The US is in a unique position because it has flexible LNG that can be rerouted to Europe or to Asia, depending on who's willing to pay that price," said Emily McClain, gas markets analyst at Rystad.

But even if the US can ship more gas to Europe, the continent may struggle to receive it with many import terminals in coastal areas where there are fewer pipeline connections to distribute it.

Boris Johnson says Ukraine can “certainly win” against Russia

Prime Minister Boris Johnson said Ukrainian forces can "certainly win" against the invaders, as the British military intelligence confirm they are driving back from the Russians situated around Kyiv.

The Ministry of Defence said the Ukrainians were expected to keep trying to push the Russians away from the capital.

In the city of Mariupol, authorities say around 300 people died in a Russian airstrike earlier this month on a theatre where hundreds of people were sheltering.

If confirmed, it is likely to lead for renewed calls for Western powers to step up military support for the Ukrainian forces.

Following a day of talks on Thursday with Nato and G7 allies in Brussels, Mr Johnson acknowledged the situation for the Ukrainian people was "grim, miserable".

But in an interview with BBC2's Newsnight, he praised their "Churchillian" leader Volodymyr Zelensky and said: "I think Ukraine can certainly win."

"There's a sense in which Putin has already failed or lost because I think that he had literally no idea that the Ukrainians were going to mount the resistance that they are, and he totally misunderstood what Ukraine is," he said.

But The Prime Minister said it would "logistically" be "very difficult" to supply the Ukrainian president with the tanks and jets he asked for during the Nato summit on Thursday.

Western allies have previously been hesitant about providing jets out of concerns it could further provoke Russian president Vladimir Putin.

Mr Johnson accepted Mr Zelensky wanted more from Nato, saying allies felt "agony" about their "inability to do more given the constraints we face".

Russia’s use of chemical weapons

Nato leaders agreed on Thursday that Russia using chemical weapons would mark a "fundamental change" in the Ukrainian conflict that would be met with a "very severe response".

Mr Johnson said use of chemical weapons is "intended to be a distraction from what is really going on and that is a savage attack with conventional means on innocent people in urban centres in Ukraine, absolutely barbaric use of artillery and mortars and rockets as I've described, thermobaric bombs included it now seems, that is what is going on."

Nato secretary general Jens Stoltenberg announced an agreement to provide equipment to protect against biological, chemical and nuclear threats and assistance in the cyber-security sphere.

Foreign Secretary Liz Truss said: "Russia's targeting of critical national infrastructure is calculated and dangerous.

"It shows (Vladimir) Putin is prepared to risk lives to sow division and confusion among allies."

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