Is it finally time for the EU to ban Russian LNG?

Russian liquefied natural gas continues to be delivered to Europe, even though we have a supply available from our ally across the Atlantic. For Europe’s energy security and to ensure Ukraine’s survival, it’s time to ditch Russian LNG, says Daniel Dalton

Keir Starmer promised “an improved and ambitious relationship” with European partners. With the UK election swinging to the left while the European Union election swinging to the right, there is one common priority we should all be focusing on: energy.

Energy security cooperation will advance UK and EU interests in three of our most important challenges: how to counter the continuing threat from Putin’s Russia; how to increase global support for Ukraine; and how to keep energy affordable, clean and reliable for British families and consumers.

First of all, about Russia. Both the UK and the EU have worked hard to eliminate Russian gas from our energy supply. This has largely been achieved for pipeline gas, but Russian liquefied natural gas (LNG) continues to be delivered to Europe. The EU’s recent effort to ban the “transhipment” of LNG (while still allowing EU countries to import and use Russian gas themselves) is a waiver. Billions of Euros will still be paid for this LNG, funding Putin’s war machine. A complete ban is needed, enforced by law and sanctions in both London and Brussels.

Second, energy security is critical to both Ukraine’s short-term survival and eventual reconstruction. Putin’s forces are targeting Ukraine’s energy infrastructure: new long-term sources will be needed to avoid the country repeating its past dependence on Russian gas.

However, a complete divestment of Russian gas raises an uncomfortable topic: how will we make up for this lost supply and continue to support Ukraine’s recovery? Energy demand is not slowing, and our expanding renewable energy technologies are not ready to support our power grid on their own. The removal of such a massive supplier means that even small disruptions to the supply chain will now potentially lead to price increases in the UK market. These price increases are made all the more likely by the domestic policy of prioritizing zero deadlines, when neither the technology nor the market is currently capable of delivering at this rate. Household energy bills are being collected from all sides.

Fortunately, we have a long-term solution available from our ally across the Atlantic. In recent years, the United States has become the world’s largest exporter of LNG, overtaking Russia. Two-thirds of America’s gas exports are now being redirected to our markets to replace Russian gas that has been cut off. This created price stability for both the UK and mainland Europe.

Energy security for Europe and Ukraine

That same US LNG is also critical to Ukraine’s recovery efforts. One of the largest exporters, Venture Global, has signed an agreement with Ukrainian energy firm DTEK to provide short-term cargo ahead of this coming winter and long-term supply to Ukraine and Eastern Europe for the next twenty years. This is an extraordinary commitment by the American private sector and one that underscores the importance of American LNG to Europe’s future security.

The opportunity now exists for a stable long-term energy supply for decades to come from our closest NATO ally. Across Europe this prompted action. New and expanded LNG terminals are being built rapidly in France, Italy, Spain and Germany. Here in the UK, Grain LNG, a division of National Grid, has signed a long-term contract with Venture Global – the same firm that will supply Ukraine – with the aim of meeting 33% of all UK gas demand.

It is this expanded US supply that provides the foundation to both permanently ban Russian LNG and support Ukraine’s future energy independence – all while keeping UK and EU energy affordable. The cost of energy has been out of the headlines in recent months, but if our future US energy supply were to be disrupted, the consequences could be devastating.

This worrying situation is a real possibility, due to new developments across the pond. The current US administration has placed a “moratorium” on the issuance of new LNG export permitswhich has introduced real uncertainty into the market and potentially uncertainty for Europe’s energy supply over the next few years. Our demand for LNG will only increase as demand for energy increases. The current administration’s moratorium – if not lifted – will mean that US LNG exports cannot increase to meet this demand. This undermines our energy security and also our long-term climate goals, as it will force a return to dirtier fuels.

The LNG moratorium simultaneously harms American jobs, undermines European energy security, and weakens Ukraine. The only obvious beneficiary is Vladimir Putin. A positive first start for the new UK-EU cooperation would be to work together to get President Biden and Vice President Harris to end the moratorium and approve LNG export projects that are critical to our national security. If not, the resulting drop in US energy exports will leave both the UK and Europe very exposed.

After AM city

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