US cracks an important gas deal with the EU. It is on the liquified natural gas. It is as per the attempt to cut reliance on Russia. The agreement came out on Friday. It was during US President’s three-day visit to Brussels for an EU meeting.
Mr. Biden and European Commission President Ursula von der Leyen came up with the following entailment. It was after Russia’s invasion of Ukraine. It brings forward a great opportunity to resist Kyiv.
“Putin is leveraging Russia’s oil riches to blackmail and manipulate its neighbors,” Mr. Biden said in Brussels. “He’s used the money to fuel his military machine.”
The agreement will free the offset. It is from short-term suffering. This was due to the reduced Russian gas supplies. The agreement will increase the cost, but it is a stronger strategic footing.
Russia provides 40 percent of the EU’s gas. It will also channel the gas someplace else now. The dependency is now curbed to grounds. New supplies will come from a far place. It will also be in the form of LNG (cooled and liquified gas).
And, there is rivalry for LNG supplies from nations. It is for Algeria and Qatar. This drives up prices too. Gas comes from Norway. The North Sea also provides minimal benefit to the EU.
The United States will supply 50 billion cubic meters of gas per year. It is from the other part of the world.EU will be generating and functioning on more renewable resources. It will overall enhance the efficiency of the increasing imports.
Putin will no longer be able to use energy to manipulate neighbors. Also, the EU did a great job tieing up with the US during the three-day visit.
The US will soon be banning all Russian oil and gas imports. It also depends on the phasing out of Russian Oil Imports. This will be by the end of 2022.