Friday, March 1, 2024

The US will temporarily suspend exports of liquefied gas to some countries

The decision addresses the need to advance US President Joe Biden’s climate agenda.

The United States government announced this Friday that it will temporarily suspend exports of liquefied natural gas (LNG) to countries where it does not have free trade agreements.

This decision will not affect exports of liquefied gas to US allies in Europe and Asia, even though the countries in question do not have free trade agreements with Washington, Energy Secretary Jennifer Granholm said during a press conference.

“We will ensure that the medium-term energy needs of our partners are met,Granholm said.

According to the Secretary of Energy, the suspension will not affect the already authorized exports of liquefied gas, and, in addition, his department has the option to make exceptions to protect the national security of the United States and its relations with its allies.

The decision addresses the need to advance US President Joe Biden’s climate agenda. committed to reducing emissions from fossil fuels, including natural gas, said Ali Zaidi, the head of the climate advisor for the climate.

In particular, the Department of Energy wants to examine whether the current liquefied gas export rate benefits or harms the public interest of the country and negatively contributes to pollution.

The last analysis that the department made of liquefied natural gas began in 2018, when the export capacity of the United States was below 113.3 million cubic meters per day.

But, now, that capacity has more than tripled, and the United States currently leads the world in liquefied gas production, with the ability to double its capacity by 2030. according to data from the Department of Energy.

For this reason, the Department of Energy wants to do an in-depth analysis of the impact that the production of liquefied gas has on the climate crisis, and while doing this study, it has decided to temporarily suspend exports to some countries. .

According to a senior US official, there is no definite timetable for lifting this suspension.

Free trade agreements

The freeze on exports only affects countries with which the US does not have free trade agreements. It does not affect those countries where Washington has signed these types of treaties because, in them, the rules for energy exports are usually fixed and cannot be easily changed.

Liquefied natural gas from the United States has become key for many European countries that have seen energy prices rise after their imports of Russian liquefied gas decreased due to the war in Ukraine.

Less than two months after the start of the Russian invasion, in April 2022, the European Union (EU) and the United States created a group to reduce the dependence of European countries on Russian energy.

According to a report published on the first anniversary of the creation of this working group, in 2022, the United States will export 56 billion cubic meters of liquefied natural gas to the EU, a significant increase from 22 billion cubic meters in 2021.

World Nation News Desk
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