Can Europe rely on US LNG?

The U.S. House of Representatives appears to be so dysfunctional that House Intelligence Committee Chairman Mike Turner is unable to speak publicly to respond to the grave national security threat posed by Russia’s new anti-satellite weapons. I had to show up. Meanwhile, another House speaker, Mike Johnson, is delaying a vote on critical foreign aid to provide self-defense to Israel, Taiwan and Ukraine.

Energy, particularly the Biden administration’s moratorium or ban on future infrastructure development on liquefied natural gas (LNG), is also on the agenda of Congress. The recent White House decision is one of the worst in a series of failed energy decisions, including canceling the Keystone XL pipeline from Canada’s oil sands to the Gulf of Mexico.

LNG is a relatively clean energy source that has helped keep Europe’s lights on even after the Russian invasion, but it is now under pressure from online influencers and activists during the presidential campaign. Besieged. The House voted on Thursday, February 15th. As expected, it passed 224-100, with a majority of Republicans and nine Democrats jointly voting against the Biden administration’s recently announced ban/delay on approval of new LNG infrastructure projects. . This vote included pro-mining representatives, pragmatic environmentalists, internationalists of both parties, and pro-Ukrainians deeply displeased with the decision to suspend approval suspensions for LNG exports. defenders have rallied together.

Sadly, Congress is not alone in its policy failures. The suspension of LNG exports is the latest in a series of national embarrassments, including recent debacles over border funding, indecisive impeachment, aid to Israel, and aid to Ukraine. Sen. Joe Manchin (D-West Virginia) put it bluntly. “…It’s all about politics.” Biden has restricted LNG exports by suspending pending approvals, even though many previously built facilities are nearing completion.

Given the potential impact, the stakes are high and Congress should make its case known. Unfortunately, despite the support of Joe Manchin (D-Va.) and two Democratic senators from gas-producing Pennsylvania, Bob Casey and John Fetterman, Majority Leader Chuck Schumer It is unlikely that the House Leader will allow the Senate to vote on the LNG promotion bill.

Europe, which is more aware of its environmental needs than the United States, is concerned that Biden’s policies could be reversed. The company sees no conflict between its use of LNG as a bridge fuel to a long-term transition to zero emissions and its green energy goals.

European politicians and business leaders are sounding the alarm over the newly announced US policy. Benjamin Lakatos, CEO of MET Group, a Swiss-based European LNG trading company with interests in the US market, summed up the European perspective: LNG is coming to Europe at affordable prices. ”

According to a recent CSIS report, European as well as Japanese and many Asian companies have all reiterated that this is a short-sighted policy.

Encouraging U.S. producers and exporters to meet European and Asian gas needs is in no way inconsistent with climate change commitments. In LNG, investors have found a win-win solution. LNG reduces his CO2 emissions and brings benefits. Where are the drawbacks? Some may say that methane emissions are 28 times more powerful than CO2. In most cases, leaks are rare. There’s a reason LNG is rightly known as a bridge fuel. Demand for LNG is projected to continue increasing until 2050, as demand for traditional fossil fuels will decline while demand for green energy increases.

Coal-fired power plants that emit large amounts of exhaust gas are not uncommon. Without an abundant and reliable gas supply to thrive, this type of power plant will stubbornly persist. Renewable energy cannot and will not keep the economy strong for a while. Solar energy and wind energy are intermittent. This causes a big problem. Energy demand typically peaks at night When solar power generation is no longer available. Therefore, it is impossible to install a dedicated grid for solar power generation. Similarly, the wind changes. It doesn’t always blow, and not all areas have the same wind potential. LNG, along with nuclear power, is the low-emissions base fuel we need as renewable energy and associated storage and smart grid technologies come into play.

Curbing U.S. exports under these circumstances would mean giving up strategic economic advantage and abdicating international responsibility. Benjamin Lakatos argues that the US has had a stabilizing effect on global gas prices in the midst of severe turmoil. Even if the US did so, this chaos would not end.

Anti-LNG TikTokers and the White House are both wrong. As a continent, Europe is poor in energy. It produces only a fraction of the energy needed. Normally, this would raise concerns among internationalists, including Democrats. In recent years, Democrats have been pro-European, while Trump and the Republican Party love to bash Europe for inadequate military spending. For those paying attention, if you oppose defunding Ukraine, you should also oppose cutting its gas export capacity to Europe and Asia.

Some of you may be wondering, “So what?” Biden is taking an attitude, but things will change after the election. But does this check out? Keystone XL is dead as a doornail, giving power to Nicolas Maduro’s Chavez dictatorship. America’s allies are increasingly anxious, and the Trump effect is cooling. Biden is adding insult to his injury. If this situation continues, US allies may have to prove their policies to the US, and just as Western countries discuss trade with China, European countries will also discuss We might start talking about “risk aversion.” Such an effort would involve purchasing LNG from Qatar and Russia, and would involve aiding and abetting undemocratic regimes.

This LNG failure amounts to a foreign policy error in a world of increasing conflict. Partisan infighting is weakening America’s allies, and weak allies become a burden — or they may simply abandon America’s geopolitical ship in the rough. The United States could do better, and lifting the LNG ban should be the first step.

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