The US undermined the gas market in Europe

31 July 2018, 10:58 | Policy
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European countries will buy liquefied natural gas from the US. This is absolutely convinced American President Donald Trump. And that Europeans did not come to mind to cancel the preliminary agreements or delay with purchases under the pretext of unprepared infrastructure, the leader of the White House insists on significant financial investments of the European Union already now. "We are already negotiating with the European Union on the construction of 9 to 11 ports that will receive liquefied gas from the United States," Trump said at a news conference after meeting with Italian Prime Minister Giuseppe Comte. The American leader emphasized that the US will not finance the construction of terminals - all costs will fall on the shoulders of the EU. As a businessman, Trump knows very well that the more investment, the sooner they will want to recoup.

Consequently, Europeans will not be able to allow their LNG terminals to stand idle. The fact that the US should be leaders in the global LNG market, Trump says from the first days as president. His first visit to the EU after the elections was devoted to this topic. Then he obtained an unconditional consent only from Warsaw. But small Poland will not make the US a great exporter of LNG.

America needs the whole European gas market. And since the cost of overseas LNG does not give him the opportunity to be an honest competitor to the pipeline gas supplied to Europe, mainly by Russia, the White House does not shun blackmail. Last week, during the EU-US trade talks, the head of the European Commission Jean-Claude Juncker was forced to make concessions in order to reduce the restrictive barriers in the form of customs duties. He promised to increase EU purchases of US LNG.

At about the same time, it became known that Germany had agreed to the construction of an LNG terminal in exchange for the US promise not to interfere with the construction of the "Nord Stream-2". It is clear that for Berlin this is money thrown out, because even the existing capacities in Europe for LNG stand idle by 50-80%. But EU spending does not concern the US. Trump systematically achieves his - organizes the market for the sale of LNG and for this he uses all levers.

Business.




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