US President Joe Biden’s decision to suspend authorisations for new liquefied natural gas (LNG) projects will not affect supplies to Europe, POLITICO reports.
US Deputy Energy Secretary David Turk said in an interview after a high-level meeting with French officials in Paris La Défence business district:
It doesn’t impact any of the LNG currently being exported. It also doesn’t impact any of the current construction going on to export even more LNG.
The relief for anxious European officials came months after Biden suspended LNG export permits from new gas projects, a surprise move designed to ease the concerns of climate-conscious voters ahead of November’s elections.
The decision has infuriated European industry as it becomes increasingly reliant on US LNG as the EU seeks to divest from Russian gas amid the ongoing Ukrainian military conflict.
US LNG exports to the EU have grown steadily since the war in Ukraine began and now account for half of the bloc’s LNG shipments – up from about a quarter before the war.
Meanwhile, the US exports about 14 billion cubic feet of LNG a day, Turk says. The US has already set aside up to 48 billion cubic feet – about half of its domestic natural gas production – for export in future projects. Turk also added:
When we point out these numbers, I think there’s some reassurance that there’s the supplies that are necessary.
As these rates are rising, it was “prudent” to analyse “the climate and environmental implications if we allow even more,” a US energy official said. He later added:
Once that analysis is updated, then we will go back to reviewing the applications as they come in for additional volumes.
Gas import volumes in 2023
According to the US Energy Information Administration, the EU imported 7.1 billion cubic feet per day from the US in 2023, with France being the largest importer of LNG in the EU.
The Biden administration’s decision to suspend new permits is in line with France’s commitment to climate neutrality by 2050, a senior French official told POLITICO.
Sophie Mourlon, director general for energy and climate at the French Energy Ministry, said:
It’s consistent with our view. Transitioning away from fossil fuels … we have to pace that, we have to define calendar and meeting points.
