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EU's Energy Pivot: Why Europe is Betting Big on American LNG




In January 2025, Russia pumped up its last direct natural gas supply to the EU, ending the long term contracts that have benefitted the households for decades. The major reason behind this vast decision was Russia’s invasion of Ukraine in 2022.  Russia was supplying gas via Soviet-era pipelines functioning through Ukraine. 

EU energy commissioner, Dan Jorgensen has made a statement that the EU should focus more on producing their own energy rather than paying a price for the gas where the revenue goes to Putin’s war. He mentioned there will be more industries where gas cannot be quickly replaced by electricity and the EU will find more alternatives to fulfil the demand. He has given a hint about importing more gas from the U.S and how the European Commission has drawn up plans to engage with LNG suppliers and investors to secure more reliable and long term contracts with stable prices. 

According to the statistics, the U.S has been the main beneficiary from the situation where the EU’s imports of American gas has increased from 6% to 19% over the period. 


Does this reliance on U.S LNG have a connection with Trump's warning on how EU’s would face trade tariffs unless it imported more oil and gas from U.S? 


https://www.reuters.com/business/energy/eu-seeks-more-us-gas-renewable-energy-replace-russian-supplies-2025-02-21/

https://www.reuters.com/business/energy/russia-halts-gas-exports-europe-via-ukraine-2025-01-01

https://www.reuters.com/business/energy/eu-seeks-immediately-engage-with-lng-suppliers-draft-shows-2025-02-18/


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