Author Topic: 5 things to know about liquefied natural gas and its role in the Ukraine crisis  (Read 381 times)

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The Hill by Zack Budryk - 04/10/22

5 things to know about liquefied natural gas and its role in the Ukraine crisis

The Russian invasion of Ukraine has put a spotlight on the production and trade of liquefied natural gas (LNG), a key part of Russia’s energy leverage in Europe.   

Before the invasion, Russia was Europe’s third largest supplier of LNG after the U.S. and Qatar, accounting for 20 percent of imports, according to the U.S. Energy Information Administration. 

In March, following the invasion, the Biden administration announced a deal to increase LNG exports to the EU to cover about one-third of imports from Russia.   

Here are five things to know about the LNG industry and its significance in the Ukraine crisis.   

It puts the U.S. in a position of strength  

The U.S. already led in LNG exports to Europe in 2021, providing 26 percent of its imports. The U.S. export of these resources to Europe were on the rise even before the Russian invasion. They saw an increase of 3.4 billion to 6.5 billion cubic feet a day between November 2021 and January 2022.   

This comes after the “incredible growth” the sector has seen in the U.S. in recent years, said Ben Cahill, a senior fellow in the Energy Security and Climate Change Program at the Center for Strategic and International Studies.   

“Basically the U.S. had no LNG export industry at all until 2016,” Cahill told The Hill. “Now, already, we’re the largest exporter in the world by capacity. And it’s pretty stunning when you think about it. It’s really just a short number of years that’s brought us from zero to more capacity than Australia and Qatar.”   

The shift gave the U.S. a strategic advantage because “LNG was growing and providing flexible volumes to the market at a time when Europe obviously needed it … so it was a fortunate series of events for us LNG exporters,” he added.   

More: https://thehill.com/policy/energy-environment/3262830-5-things-to-know-about-liquefied-natural-gas-and-its-role-in-the-ukraine-crisis/