Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK to announce U.S. gas deal after climate change summit -Telegraph

Published 11/07/2022, 05:12 PM
Updated 11/07/2022, 09:35 PM
© Reuters. British Prime Minister Rishi Sunak addresses delegates during the COP27 summit at Sharm el-Sheikh, Egypt, November 7, 2022.  Stefan Rousseau/Pool via REUTERS

© Reuters. British Prime Minister Rishi Sunak addresses delegates during the COP27 summit at Sharm el-Sheikh, Egypt, November 7, 2022. Stefan Rousseau/Pool via REUTERS

(Reuters) -British Prime Minister Rishi Sunak is poised to announce a major natural gas deal with the United States after the COP27 climate change summit, the Telegraph newspaper reported on Monday.

Britain hopes the United States will promise about 10 billion cubic metres of liquefied natural gas (LNG) over the coming year, the report said, adding that discussions about the deal are in their final stages and an announcement could come in a week or two.

But it also said that wrangling over the exact amount continues and it was possible that a specific figure would not be given when the deal is publicised. It was also unclear how much of the gas - which will be sold by U.S. companies - will be in the UK energy system this winter, the Telegraph said.

Earlier this year, the United States agreed to supply 15 billion cubic metres of LNG to the European Union to help it cope with the energy crisis caused by Russia's invasion of Ukraine.

Britain's National Grid (LON:NG) has said that Britain's ability to secure gas supply would depend upon its prices being high enough to attract exports from Europe and LNG from countries such as Qatar and the United States.

U.S. LNG producers' ability to supply more fuel will rise only modestly until 2025, when three new plants become fully operational, according to U.S. government estimates. The plants will add 5.7 billion cubic feet per day (bcfd) to the about 11.75 bcfd of exports expected this quarter.

© Reuters. British Prime Minister Rishi Sunak addresses delegates during the COP27 summit at Sharm el-Sheikh, Egypt, November 7, 2022.  Stefan Rousseau/Pool via REUTERS

Wholesale gas prices have soared in recent months as economies reopen from COVID-19 lockdowns while high demand for LNG in Asia has resulted in less supply to Europe.

Around 12 British energy suppliers have collapsed this year, affecting more than 2 million customers.

Latest comments

COP 27 then LNG? 😂
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.