On the 7th November 2022, it was announced the UK and the US have agreed a deal and an “energy security and affordability partnership” which will include increased exports of Liquefied Natural Gas (LNG) to our shores and the setting up of a joint action group aiming to reduce global dependence on Oil and Gas from Russia.
Previously the United Kingdom was not reliant on significant quantities of gas being imported from Russia, prior to the invasion of Ukraine, however we have been exposed to the large increase in prices as our neighbours from Europe compete for other avenues, including LNG, to ensure storage facilities are full for the Winter, in case of increased demand. Furthermore, due to our lack of significant storage capacity, our reliance on imports has increased greatly.
However under the new agreement, the United States will aim to more than double the amount of LNG exported to the UK over the next 12 months, compared to levels shipped in 2021. Data showed the UK imported 3.9bcm of LNG from the US in 2021, which in turn equated to 26% of our total. This level increased to 9.7bcm (42%) in the 12 months prior to October 2022.
As part of this agreement, the Government have confirmed the US will “strive” to export at least 9 – 10bn cubic meters (bcm) of LNG through UK Terminals, over the next year, in turn easing any supply concerns across Europe.
Both countries also are aiming to collaborate on the acceleration of green initiatives including the boosting of the electric vehicle market, the development of appliances that are energy efficient and decarbonisation of the aerospace industry.
In a joint statement, the Prime Minister Rishi Sunak and the President of the United States of America Joe Biden said
“During this global energy crisis, brought on by Russia’s illegal invasion of Ukraine, it is more important than ever for allied countries to deepen their cooperation to ensure resilient international systems which reflect our shared values.
“Working with our allies, the United States and United Kingdom commit to intensify our collaboration to support international energy security, affordability, and sustainability, as Europe reduces its dependence on Russian energy.”
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