The United States and the European Union have announced a new partnership to reduce the continent's reliance on Russian energy
is driving Western Europe into the outstretched arms of the United States again, and the embrace was especially apparent when President Joe Biden offered a major expansion of natural gas shipments to his European Union counterpart Friday.
It will take huge investments, and getting more liquefied natural gas to Europe could be difficult. U.S. export facilities are already operating at capacity, and most new terminals are still only in the planning stages. Most U.S. shipments already go to Europe. Yet, LNG can't simply be conjured out of thin air. It requires export terminals that turn the gas into super-chilled liquid, then a reception terminal on the other end to turn it back into gas form to go into Europe's pipeline system. The terminals cost billions and take years to build. Withand the war's jolt to volatile energy markets, terminals and tankers around the globe are fully booked already, leaving customers competing for available shipments.
The U.S. has been dramatically increasing its LNG exports in recent years, and most already go to Europe, according to the Center for Liquefied Natural Gas, an industry lobbying group. Although much of the supply is already contracted out to buyers, there are still opportunities to shift its destination.
Germany, Europe’s industrial juggernaut, has already started making major efforts to bring that gas in from coastal terminals , especially after it suspended approval of the Nord Stream 2 natural gas pipeline from Russia last month.
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