How LNG and energy security can be improved

The current geopolitical climate

The wider political conjuncture between Ukraine and Russia has highlighted the current instability of Europe’s energy security. Through a combination of increased energy demand, unprecedented weather patterns and the geopolitical crisis, Europe is facing concerns surrounding the availability and consumption of energy.

This particular crisis has generated the opportunity to rapidly address the issue of European energy security, a topic that has faced contention and a lack of progress throughout the previous decade.  

Amongst conflict concerns and political agendas, the European Commission and the United States are now interested in departing from Russia’s coercive business with Europe’s energy consumers. 

The joint task force between these two parties is focused on establishing independence from Russian fossil fuels and transitioning to stable, affordable, cleaner energy supplies across Europe.

 

Goals of the joint task force

Representatives from the European Commission and the United States released a statement on the 25th of March 2020. Its focus is the establishment of a joint task force targeted to address Europe’s energy security emergency. The two parties have cooperatively confirmed a strategic outline to reduce dependency on Russian energy and invest in cleaner energy sources. 

Within the report, 14 goals were established for the immediate cooperation of the European Commission and the US. These goals offer two primary purposes. To diversify LNG sources in accordance with current climate goals. And to reduce the demand for natural gas. 

Through a range of short term and long term actions and arrangements, the goals below indicate a pathway to a secure energy supply for the EU and Ukraine, as well as a transition to more sustainable energy consumption.

 

The task force prioritises the following actions:

 

1. Obtaining at least 15 billion cubic meters of liquefied natural gas (LNG) for the EU market in 2022. Plus additional expectations to increase this amount in the future
2. New LNG infrastructure and associated pipelines are required to establish efficient exportation between the US and Europe. Both parties are committed to reducing the greenhouse gas intensity of this project. Clean energy will power operations and actions will be taken to reduce methane leakage.
3. The US will ensure an enabling regulatory environment to efficiently review applications for additional LNG export capacities.
4. The European Commission will consult with EU member states to fast-track approval for LNG import infrastructure. This will include the organisation of onshore facilities, pipelines, regasification vessels and import terminals.
5. The European Commission will determine the demand for additional LNG imports between April and October 2022 amongst EU member states.
6. The European Commission will ensure stable demand for US LNG supplies. Volumes of around 50 billion cubic meters of LNG will be arranged per year until at least 2030. This is to establish stability between demand and supply.
7. The European Union is preparing a regulatory framework to establish the appropriate storage and supply of energy. This will improve the stability of Europe’s energy security. 
8. The US and European Commission will collaborate with key stakeholders to formulate actionable recommendations to reduce overall gas demand. Implementation and utilisation of clean energy technologies across the US and Europe will follow.
9. The task force and stakeholders will partner in investments for the development of energy efficiency technologies. Innovation to transition from fossil fuels is required.
10. Planning and approval of the subsequent renewable energy projects will be expedited by the task force.
11. Developing a workforce to support the deployment of developed clean energy technologies will be rapidly accelerated. 
12. The US and the European Commission will collaborate to advance the use of hydrogen as a clean energy source to cut greenhouse gas emissions and the reliance on fossil fuels.
13. The European Commission is in current negotiations to reduce gas consumption by creating renewable energy sources and altering how energy is used
14. The US and European Commission are in collaboration to negotiate an emissions-based global arrangement on the steel and aluminium trade. This will establish a plan to reduce energy consumption and incentivise industrial decarbonisation. 

 

Role of LNG in energy security

 

• Energy Security

 

In the pursuit of cleaner energy sources and independence from Russian supplies, LNG offers a temporary source of energy. As the cleanest fossil fuel available, LNG provides the greatest security in terms of availability. 

With an abundance of gas reserves across the globe, this high energy performing fuel offers a solution for short term energy security across Europe. 

 

 

• Clean energy

 

Unfortunately, LNG isn’t the perfect solution to the current energy crisis. Natural gas isn’t sustainable in terms of the planet’s long-term greener fuel objectives. 

Whilst LNG is the cleanest fossil fuel, there are external concerns about the additional consumption that is required to establish the task force’s immediate goals. Although LNG does offer benefits of 40% less CO2 emissions than coal and 20% less CO2 emissions than oil, it is not without its limitations. 

Additional fossil fuel consumption will be required during the initial establishment of infrastructure and associated pipelines. This conflicts with the United State’s promises for sustainable action. Whilst it is one of the priorities to address the volume of methane leaked throughout this process, this potent greenhouse gas remains damaging throughout the transportation and consumption of LNG.

Whilst the circumstances are far from ideal, LNG can help Europe to improve energy security. Departing from Russia’s supplies establishes stability for access to fuel as it is required. As a temporary solution during the transition from fossil fuels to cleaner energy sources, LNG exported from the US offers fewer political and environmental conflicts.