Senior officials from the two largest EU powers, France and Germany, accused the US of overestimating the price of liquefied natural gas (LNG) and taking advantage of the war in Ukraine and the energy crisis to make profits and make Europe dependent on their gas.
Before the war in Ukraine, Russia was Europe’s largest supplier of natural gas, with a 55% share, mainly due to lower prices than LNG deliveries. However, after the outbreak of the war, Europe began to impose sanctions on Russia by reducing its purchases from Gazprom, while the Russian state-owned energy giant responded by reducing its gas supplies to EU countries.
The EU was forced to start importing LNG from the US and other countries, but the US share has increased substantially from 28% to 45%. On the contrary, deliveries from Russia fell by 75%.
The United States was criticized by French Finance Minister Bruno Le Maire and German Economy Minister Robert Habeck.
Mr. Le Mair recently told French MPs that the conflict in Ukraine must not lead to US economic domination and the weakening of Europe.
The US must not be able to dominate the global energy market while the EU suffers the consequences of the conflict in Ukraine, Le Maire said.
He also said it was unacceptable to let the US export LNG at prices four times higher than those paid by the country’s companies. The French minister also called for the establishment of a more balanced relationship between the United States and Europe.
Robert Habeck: Some friendly countries also charge astronomical prices for gas
Mr. Habeck accused LNG exporters, including the US, of overestimating the price of gas as Europe’s largest economy struggles to balance its energy mix without Russia’s help and that German companies are closing their factories. due to the high cost of gas, according to reports.
Habeck told Neue Osnabruecker Zeitung that some nations, even friendly ones, charge “astronomical prices” in some cases, adding that this situation has created problems that need to be discussed.
He recalled that the US turned to the EU when crude oil costs soared and European national reserves were then used to tame prices. Such solidarity, she said, would also be useful for reducing gas prices, he said.
Habeck also called on the EU to synchronize gas purchases to lower prices, instead of individual countries outrunning each other and thereby raising prices.
U.S. LNG exports to France, Croatia and Poland increased by more than 1,000%
U.S. exports of LNG and other natural gases surged sharply in August, government data showed Thursday, particularly for European nations facing a rapidly approaching winter with insufficient supplies from Russia almost guaranteed.
My analysis shows that while natural gas exports to France increased by 421% in the first eight months of 2022, their value increased by 1,094% in August alone.
The same goes for Croatia, where imports increased by 281% until August, but by 1.195% in August; for Poland, which grew by 505% since the beginning of the year and by 817,000% in August; and for the UK, which increased by 216% year to date and by 6,797% in August.
The same trend is not true for all US natural gas exports.
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