The United States and UK agreed to increase imports of American liquefied gas

US and UK agreed to increase imports of American liquefied gas


What happened?

US President Joe Biden and UK Prime Minister Rishi Sunak have agreed to an agreement to increase exports of liquefied natural gas from the US to the UK.

This is reported by The Guardian

Sunak and Biden announced a “partnership on energy security and affordability” and created a joint action group led by representatives from Westminster and the White House to reduce global dependence on Russian energy.

Under the deal, the US aims to more than double the amount of liquefied natural gas (LNG) exported to the UK over the next year compared to 2021.

“Britain was not dependent on large volumes of Russian gas before the invasion of Ukraine, but has been hit by soaring prices as its European neighbors scramble for other supplies, rushing to fill storage,” the report said.

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

This year, Britain “has emerged as a key gateway for the import and re-export of LNG to Europe”. However, its lack of gas storage means it could still face tight energy supplies this winter.

The government said that as part of the gas deal, the US is “aiming” to export at least 9-10 billion cubic meters of LNG over the next year through UK terminals.

According to vessel tracking service ICIS LNG Edge, the UK imported 3.9 bcm of LNG from the US in 2021, representing 26% of total UK LNG imports.

In the 12 months to October 2022, the UK imported 9.7 billion cubic meters of US LNG, representing 42% of total imports.

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