US to double gas exports to Britain under new energy partnership

UK PM Rishi Sunak heralds deal that will lead to 10 billion cubic metres of LNG being processed at British terminals next year

The US will boost its LNG exports to Britain next year as Europe looks to end its dependency on Russian energy. PA
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Britain and the US have announced a new energy partnership which they say will help reduce Europe's dependency on Russian gas and oil.

Under the new "UK-US Energy Security and Affordability Partnership", America will export at least 9-10 billion cubic metres of LNG over the next year via UK terminals, more than double the level of last year.

It comes after the surge in global energy prices caused by the war in Ukraine prompted European and G7 leaders to introduce a $60 price cap on a barrel of Russian oil.

UK Prime Minister Rishi Sunak said the new partnership would boost energy security, efficiency and affordability and would cut gas prices to ensure the national supply would not be exploited by "a failing regime”.

The partnership will be steered by a new UK-US joint action group, led by senior officials from the British government and the White House, with the first meeting to be held virtually on Thursday.

The Prime Minister and US President Joe Biden are not expected to attend.

Both countries say the deal will capitalise on the UK’s gas import infrastructure and will help European countries as they prepare to replenish gas storage next year.

Mr Sunak said the partnership would help end Europe’s dependence on Russian energy “once and for all” and bring down prices for British consumers.

“Together, the UK and US will ensure the global price of energy and the security of our national supply can never again be manipulated by the whims of a failing regime,” he said.

“We have the natural resources, industry and innovative thinking we need to create a better, freer system and accelerate the clean energy transition,” he said.

Citing the war in Ukraine, Mr Sunak and Mr Biden said in a joint statement that it was “more important than ever” for allies to work together to build “resilient international systems”.

“Our immediate shared goal to stabilise energy markets, reduce demand and ensure short-term security of supply is underpinned by the longer-term objective of supporting a stable energy transition to achieve net-zero emissions by 2050, which in itself will strengthen our energy security,” they said.

“To this end, we are establishing a Joint Action Group for Energy Security and Affordability to accelerate our immediate co-operation on short-term action to support energy security and affordability in the United Kingdom and across Europe.”

Updated: December 07, 2022, 3:26 PM
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