Ivan Geliukh: Europe increases LNG imports from the USA

The European Union is making significant efforts to diversify its energy sources in order to reduce dependence on Russian gas. These measures focus on increasing the import of liquefied natural gas (LNG) from the United States and entering into long-term contracts with other reliable suppliers. This was outlined by DTEK top manager Ivan Geliukh in his column.

According to the expert, with the launch of new American LNG export terminals at the end of 2024, there has already been a significant increase in the share of LNG in Europe’s energy supply. The U.S. accounts for more than half of all new LNG export capacities, says Geliukh.

In addition to cooperation with the U.S., Europe is actively concluding long-term contracts with other partners. “New agreements, particularly with Qatar and Norway, are aimed at ensuring stable supplies in the future. For instance, in October 2023, Qatar signed two 27-year contracts with European companies for LNG supplies to the Netherlands and France, which will replace approximately 6.5% of pre-war gas imports from Russia,” the expert notes.

In his view, cooperation with Eastern Mediterranean countries, such as Israel and Egypt, which are developing their own gas fields, also plays an important role. This allows Europe to expand its network of suppliers and further strengthen energy security.

Geliukh also highlighted that the restoration of the Balticconnector gas pipeline between Finland and the Baltic States contributes to the stability of the region’s energy system. Additionally, European countries are actively using Ukrainian gas storage facilities to store reserves, which helps avoid sharp price fluctuations and ensures preparedness for winter challenges.

Overall, Europe’s efforts to diversify energy sources and develop renewable technologies contribute to strengthening energy independence and the stability of the energy market.

It is worth noting that alongside diversification of supplies, the EU is actively investing in the development of renewable energy sources. Investments in solar and wind energy, as well as the development of new energy storage technologies, allow countries to reduce their dependence on natural gas.

Moreover, the REPowerEU plan has set ambitious goals to reduce fossil fuel use by 2030. Therefore, European countries are investing significant funds in the modernization of energy systems, increasing energy efficiency, and supporting green initiatives.