But the Russian president, eager to give up apparent control over Europe’s electricity market, did not think through who he was handing the keys to.
The United States’ energy industry has emerged as the main beneficiary of the war in Ukraine, as the country’s gas utilities have filled the void left by Russia, according to a new report.
Foundational to America’s resurgence as a global energy hub is the growing demand for liquefied natural gas (LNG), which both Britain and Europe have become increasingly concerned about since separating themselves from the Kremlin.
This shift in demand has allowed US power corporations to overtake companies like Gazprom as they have increased their LNG exports to countries around the world.
The World Fuel Union’s (IGU) unsolicited annual report reveals the extent of the expansion as global trade of LNG exceeds 400m tonnes for the first time in 2023.
Of this, the United States contributed 85 million tonnes, making it the region’s largest exporter, later expanding its global supply by 50 percent through 2021.
“More than two years have passed since the outbreak of the war in Ukraine, Europe remains heavily dependent on LNG imports to replace reduced Russian pipeline gas flows,” the file said.
“Last year was the year the world reopened and recovered but the conflict in Ukraine still forced Europe – which has built substantial LNG infrastructure – and other LNG consumers to diversify away from Russian pipeline gas. Have done.
“The US has played a good role in filling the gap left by Russia and becoming the world’s largest LNG exporter.”
The United Kingdom spent £7 billion buying LNG from the United States at the closing occasion, representing a 33-fold increase since 2018.
This means that Britain, along with much of Western Europe, is now dependent on the United States for its energy security.
The momentum will be more intact than the West’s previous dependence on Putin, with the professionals having an ultimatum that it can make things its own.
The incident came days after President Joe Biden temporarily halted approvals for new LNG gas terminals, raising questions about how fast U.S. utilities can meet rising demand. Can increase production.
However, analysts expect this policy to be reversed if Donald Trump wins the November election.
As a volatile gas in manufacturing, LNG is made by turning natural gas into a liquid by cooling it below -161C. Unlike pipeline gasoline, which is specific by geography, it can be shipped to any country around the world with an import terminal.
Breaking Russia’s grip on the West
Over the past 20 years these houses have helped become an energy market by promoting LNG internationally, helping to split Russia’s hold on the West.
Given the pace at which the United States is dominating the LNG market, figures show the UK also bought gas from Qatar, Peru, Angola, Egypt and Trinidad on previous occasions.
It assumed that 25 percent of the UK’s total gasoline supply in 2023 could be made up of LNG, with the United States by far the most important provider.
Put another way, the United Kingdom ships about 17 percent of its gasoline from the United States as LNG, while importing another 37 percent from Norway as piped gasoline.
Overall, the United Kingdom will thus be more dependent than ever on foreign energy supplies on this occasion.
It’s a development that has been replicated across Europe – with LNG imports now supplying most of the continent’s gasoline – and putting it in direct competition with Asia for speed supplies, the file said.
“Europe is now a major LNG importer, remaining the second largest importing region with 121 million tonnes of LNG (last year),” the file said.
“LNG supplies almost half of Europe’s gas, competition between Asian and European markets remains a key market dynamic.”
Fuel business insiders see the versatility of LNG and its potential to break up regional pipeline-based monopolies as big benefits.
Li Yalan, President of IGU, noted: “The LNG industry has demonstrated incredible agility and innovation through some of the toughest tests in recent years.
“This is an industry that is playing a vital role in tackling an energy crisis that has not yet been fully resolved and an energy transition that is challenging.
“LNG is a tool that will be critical to providing greater flexibility to rapidly changing energy systems around the world, and it will have an essential role in reducing the inherent risks of uncertainty through that process.”
Alternatively, it is worth noting that the £21 billion spent by the UK on the LNG offtake opportunity is cash that is being shipped out of the country, supporting jobs and providers in other locations rather than in the United Kingdom.
The country’s cost per household to import LNG is equivalent to £750. And given declining production from the North Sea, the bill may only increase if we remain addicted to gasoline.
The Labor birthday celebration says it would undermine the entire financial system – which is why Labour’s silhouette energy secretary Ed Miliband has pledged to “break with gas” and push the public against low carbon energy.
They argue that breaking that dependence would have alternative benefits, particularly in electricity security.
Miliband said of the previous era, “The issue of clean energy is now also a matter of energy independence, energy security and lower bills.” “This was clearly and tragically demonstrated by the invasion of Ukraine, where we were in the grip of Vladimir Putin.”
However, business professionals have warned that Miliband’s plans, which include banning new oil and gasoline licenses in UK waters, will likely make the public more dependent on LNG and alternative imports.
This is because 180 of the United Kingdom’s 284 oil and gas fields are expected to cease production over the coming five years, and with no new ones to take their place, domestic production will be reduced by 2030.
LNG is expected to fill that shortfall to a large extent.
Professionals describe how the company is already preparing for the surge in demand by spending billions of pounds on new LNG terminals and a fleet of ships to deliver gas around the world.
These ships were already among the greatest ships in the world, with some capable of carrying enough gasoline to supply the whole of Britain for an entire period.
The IGU file said several more of those ships are under construction.
“The global LNG shipping order book had 359 new vessels under construction at the end of February 2024, equivalent to more than 51 percent of the current active fleet.
“This reflects shipowners’ expectations that the LNG trade will continue to grow in line with scheduled increases in liquefaction capacity, particularly from the US. An expected 77 carriers will be delivered in 2024.
United States’ LNG manufacturing to triple by 2050
As far as where the gasoline comes from, most of it will be American.
America Power Knowledge Management estimates that America’s LNG manufacturing will undeservedly triple by 2050 – no matter what the environmental teams say.
The United States is now also supplying the Middle East, as US energy company Sempra recently pledged to provide 5 million tonnes of LNG on a deal with Saudi Arabia’s Aramco.
The scale of the expected growth in the global LNG business is evidenced by the fact that 700 million tonnes are to be supplied by 2030, up from 401 million tonnes currently.
“This potentially huge increase is a powerful demonstration that the world still needs more LNG,” IGU said.
This may be pleasing to the ears of United States LNG producers, who are set to ramp up exports as Russia moves further into the geopolitical abyss.
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