The European Union is set to increase its gas imports from the United States and other countries as part of a broader strategy to reduce dependence on Russian fossil fuels, EU Energy Commissioner Dan Jorgensen announced.
Amidst ongoing tensions following Russia's invasion of Ukraine in 2022, the EU has committed to phasing out Russian fossil fuels by 2027. Despite a significant drop in Russian pipeline gas deliveries, the EU saw an increase in Russian liquefied natural gas imports last year.
In an effort to diminish financial support to the Russian war effort, Jorgensen emphasized the importance of the EU producing its own energy. He outlined plans to accelerate the deployment of renewable energy sources and to amend permit rules to facilitate the construction of renewable energy projects.
For sectors where gas cannot be swiftly substituted with electricity, the EU will intensify its search for alternative suppliers, highlighting the potential for greater imports from the U.S.
European benchmark gas prices reached two-year highs last week, underscoring the urgency of diversifying energy sources. Former U.S. President Donald Trump had previously cautioned the EU about potential trade tariffs if it did not augment its oil and gas imports from the United States.
The European Commission, while not directly purchasing gas, has been formulating strategies to engage with LNG suppliers and is considering investments in LNG export infrastructure abroad. These actions aim to secure more long-term contracts with stable prices.
The Commission is also focusing on stricter regulation of the gas market to prevent speculative trading from causing price surges. Next (LON:NXT) week, Jorgensen revealed, the Commission will propose "financial instruments" intended to separate retail power prices from the volatile high gas prices.
This move is in line with the EU's electricity market rules, which, despite the growth of renewable energy, see the price of gas as a determinant of the power price paid by many European consumers.
European gas contracts, according to EU law, must conclude by 2049 to align with the bloc's climate change goal of net zero emissions by 2050. Jorgensen refrained from commenting on the leaked draft documents related to these plans, which are expected to be published officially next week.
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