FX.co ★ US to replace Russian gas exports to Europe

Europe’s refusal to buy Russian gas can be beneficial to the US. The connection may not be so obvious at first glance but actually, there is a reasonable explanation behind this. For instance, journalists at the Financial Times suggest that Europe will cut its dependence on Russian natural gas partially by finding alternative suppliers, such as US LNG exporting companies. Although such a scenario seems very unlikely, it still deserves attention. Surprisingly, the US may turn out to be the main beneficiary if the EU completely abandons Russian gas supplies. “I think everyone felt an enormous uplift over the course of the last three to four weeks,“ Dan Brouillette, a former US energy secretary, said. “European attitudes to American fossil fuels had undergone a “sea change,” he added. Jack Fusco, chief executive of Houston-based Cheniere, thinks that “Europe’s decision to include some natural gas in its green taxonomy” and its plan to wean itself off Russian energy can be seen as positive signs of a more realistic view of LNG’s role in energy security. Natural gas prices in the US have recently soared to the highest level since 2008, having surpassed $7 per million British thermal units. LNG transported to Europe makes up about 70% of total US gas exports. However, right now, these volumes are not enough to immediately replace a sudden interruption of Russian supplies.