EU cuts energy costs from the US despite loud promises to the White House
25 December 21:18
Over the past four months, the European Union has spent 7% less on oil and gas purchases from the United States, despite its stated commitment to purchase $750 billion worth of American energy over three years. This was reported by the Financial Times with reference to energy market data, "Komersant Ukrainian" reports.
Formally, the volume of supplies from the United States has increased
Formally, the volume of supplies from the United States has increased, in particular, liquefied natural gas, which the EU is actively purchasing after a reduction in imports from Russia. However, the fall in global oil and gas prices has reduced the total cost of imports, which explains the decline in monetary terms.
According to estimates by the consulting company Kpler, in the period from September to December, imports of American oil and LNG to the EU amounted to $29.6 billion. By the end of the year, this figure reached $73.7 billion, less than a third of the amount needed to fulfill the political commitment for 2026-2028.
The promise to purchase $750 billion worth of energy was part of a broader trade agreement between Brussels and Washington concluded in the summer. It was meant to ease tensions in transatlantic relations and cement the US role as a key energy supplier to Europe after it switches away from Russian resources.
Even complete replacement of Russian gas with American LNG will require additional imports
According to Argus Media, even a complete replacement of Russian gas with American LNG would require additional imports of about $29 billion a year over the next three years.
To meet the targets of the agreement, LNG prices, according to experts, would have to rise to $37.3 per million British thermal units, almost four times the current level. The last time such prices were recorded was in December 2022, at the height of the energy crisis after Russia’s full-scale invasion of Ukraine.
At the same time, certain segments of energy trade, such as nuclear materials, play a minimal role: uranium and related products account for less than 1% of energy trade between the EU and the US.
Brussels recognizes that the agreement with Washington requires a review of the practical mechanisms of implementation. The EU is already preparing proposals for the next stage of the agreement, trying to combine political commitments with market realities and energy security goals.
