US to double UK-bound gas exports to ease transition away from Russian supplies
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The US is set to double its exports of gas to the UK and increase collaborative efforts on energy efficiency as part of efforts to drive down energy prices.
The move is aimed at reducing the global dependence on Russian energy exports by stabilising energy markets. In addition to energy efficiency, bolstering nuclear and renewables will also be part of the new agreement as well as expediting the development of clean hydrogen globally.
The initiative will be steered by a new UK-US Joint Action Group, led by senior officials from the UK government and the White House.
“Together the UK and US will ensure the global price of energy and the security of our national supply can never again be manipulated by the whims of a failing regime,” said UK Prime Minister Rishi Sunak.
“We have the natural resources, industry and innovative thinking we need to create a better, freer system and accelerate the clean energy transition. This partnership will bring down prices for British consumers and help end Europe’s dependence on Russian energy once and for all.”
The war in Ukraine has caused an international spike in energy prices that has created immense cost of living pressures for UK consumers.
The US will now strive to export at least 9-10 billion cubic metres of liquified natural gas over the next year via UK terminals, more than doubling the level exported in 2021.
Refinitiv Eikon data showed that Britain has imported around 11 billion cubic metres (bcm) of gas from the US in the first 11 months of 2022, up from 4bcm in 2021.
The G7 – which includes Britain and the US – has agreed a $60 (£49) per barrel price cap on Russian seaborne crude oil.
The US became the world’s largest LNG exporter in the first half of 2022 as the country rapidly increased its export capacity and high prices, particularly in Europe led to higher exports.
“The partnership will also drive international investment in clean energy technologies, from offshore wind to carbon capture,” Sunak added.
“This will complement the work the UK and US are doing together with G7 partners to support the use of clean and sustainable energy in developing countries through the Just Energy Transition Partnerships.
“In tandem with shoring up security of energy supply, the group will exchange best practice and work on measures to increase energy efficiency and reduce demand for gas. It is already estimated that there could be an 8 per cent reduction in demand for gas in the UK this winter.
“The Joint Action Group will explore policy solutions to enhance this efficiency, building on UK government initiatives such as the Help to Heat Programme.”
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