Energy dynamics in Europe have undergone a significant transformation as the European Union continues to navigate the aftermath of Russia’s invasion of Ukraine and subsequent energy shortage. The reliance on Russian gas, which comprised 38% of EU imports in pre-pandemic 2019, has drastically reduced to just 6% through the first nine months of this year. Notably, the United States’ exports of Liquefied Natural Gas (LNG) has played a pivotal role in filling this gap, reaching historic highs and making the U.S. the largest LNG exporter globally. With approximately half of U.S. LNG cargoes destined for Europe, America has risen to become the second-largest supplier of gas to Europe, following only Norway.
Today, the Progressive Policy Institute (PPI) released a new policy brief titled “Europe’s Second Winter Without Russian Gas: The Role of American LNG Exports,” assessing the implications and successes of the U.S.’ increase in LNG exports to Europe. Report author Elan Sykes, PPI’s Energy Policy Analyst, evaluates the EU’s strategies, including the expansion of LNG import terminals, demand reduction targets, and the accelerated deployment of renewable energy. Sykes finds that while European energy costs remain high and industrial output reduced, the acute crisis of the energy shortage appears to have subsided.
The policy brief sheds light on the United States’ pivotal role in supporting the EU’s energy transition, as well as fostering unified support for Ukraine. The U.S. is well-positioned to serve as a low-methane backstop LNG supplier while complementary clean energy supply chains scale up as rapidly as possible.
“The U.S. is leading this pragmatic and orderly global transition to net zero,” said Elan Sykes. “In the near future, the U.S. should build on this success by continuing to play a backstop role for world energy markets, implement ambitious IRA policies to push down upstream methane leakage, and expand the global coalition of low-methane producer and consumer markets for LNG with stringent and transparent certification metrics.”
Read and download the full report here.
The Progressive Policy Institute (PPI) is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Learn more about PPI by visiting progressivepolicy.org. Find an expert at PPI and follow us on Twitter.
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Media Contact: Amelia Fox – afox@ppionline.org
