EU’s LNG Dependency Could Support US Trade Promise

The EU’s deepening LNG dependency should support the bloc’s promise to ramp up US LNG imports as part of the recent trade deal with Washington.

However, meeting the steep targets of the deal will be difficult due to uncertainties over future global gas pricing and declining EU gas demand in the coming years, potentially capping additional LNG flows into the EU.

The EU has agreed to ramp up US energy imports — including LNG, oil and nuclear fuels — to the value of $750 billion over the next three years, or $250 billion each year, until the end of 2028.

The European Commission insists the figure is “based on a thorough and robust assessment.” But market participants generally agree that the bloc will not be able to hit the target.

Currently, the EU’s imports of US LNG, oil, nuclear fuel and fuel services amount to around $90-100 billion per year, the commission estimates.