US riding EU hard on energy policy moves

[EPA]

The European Union’s goal of ending its dependence on Russian natural gas does not alter the fact that it is still a very minor player in energy who is now being pushed around by its substitute source of energy – its partner and now reluctant ally, the United States.

In a sense, last week’s Transatlantic Conference on Natural Gas Security in Washington was a needed jolt to action for a Europe used to extended, some would say lackadaisical, decision-making processes that, in this particular case, involve lengthy phase-outs and plenty of bureaucratic haggling, and lack of precise rules and directions.

Those European countries that attended the meeting were clearly uneasy with US demands for express decisions and tight deadlines, combined with the kind of brutal realism the present US administration is proud to flaunt, more than any of its predecessors.

The US goal is clear: dominate the European energy market. And they are well on their way: US liquefied natural gas (LNG) now accounts for 59% of EU gas imports, while Russia’s share has dropped to 13%, from almost 40% before the invasion of Ukraine.

But expanding US presence demands significant investment from American companies. And investments are necessarily long-term and depend on predictability and minimum delays.

Greece stands to gain by the US championing of the so-called Vertical Corridor transporting gas from Greek facilities. The EU is of two minds about it, foreseeing the US dominance, the objections of pro-Russian governments in Hungary and Slovakia, and the loss of a market share by some of its members.