Concerns in Europe over White House gas terminal delays

Concerns in Europe over White House gas terminal delays

Clearly, with this move, the Biden administration is unlikely to jeopardize supplies to customers outside the United States this year or in the near future. The decision does not apply to current exports, and analysts say it will not stop a group of new LNG projects that have already been approved and are under construction. These are likely to significantly increase the United States’ ability to export gas in the coming years.

The administration says it wants time to determine whether additional LNG projects, which are still on the drawing board, would be in the public interest. Such analysis would include weighing the greenhouse gas emissions from future projects as well as their impact on the economy and national security. In a statement, President Biden said the approval freeze “looks at the climate crisis: the existential threat of our time.”

The Biden administration appears to be attempting to reassure countries that have become dependent on US natural gas. This pause “will not affect.” Our ability to supply our partners in EuropeAsia or other recipients of already authorized US exports,” the Energy Department said in a statement on Friday.

What could unsettle allies, especially in Europe, is the message that they will no longer be able to rely so strongly on supplies from the United States in coming years, analysts say. “The main thing this really boils down to for Europe is that you are running out of options,” said Henning Gloystein, director of energy and climate change at political risk firm Eurasia Group.

While Russia now supplies Europe with liquefied natural gas, European leaders want to reduce that flow. The Eastern Mediterranean looks doubtful as a major source in the future due to the conflict between Israel and Hamas. Besides the United States, the other potential major producer of additional liquefied natural gas is Qatar, a small Middle Eastern emirate.

Mr Gloystein said LNG from the United States was particularly attractive to European buyers because shipping distances from North America are relatively short and the terms US suppliers offer are more flexible than most other sources. For example, they usually allow the buyer to easily resell the gas, whereas other gas powers such as Qatar often impose restrictions. “America is all that matters,” he said.

anna swanson And melissa eddy Contributed to the reporting.

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