This is an HTML version of an attachment to the Freedom of Information request 'LNG imports from the United States'.



Ref. Ares(2020)1795411 - 27/03/2020
European Commission - Press release
 
EU-U.S. Joint Statement of 25 July: European Union imports of U.S. Liquefied
Natural Gas (LNG) are on the rise
 
Brussels, 9 August 2018
 
Since the arrival of the first U.S. LNG carrier in the Portuguese port of Sines April 2016 and
today, EU imports of liquefied natural gas from the U.S. have increased from zero to 2.8
billion cubic meters.

In their Joint Statement of 25 July in Washington D.C., President Juncker and President Trump agreed
to strengthen EU-U.S. strategic cooperation with respect to energy. In this context, the European
Union would import more liquefied natural gas from the United States to diversify and render its
energy supply more secure. The EU and the U.S. will therefore work to facilitate trade in liquefied
natural gas.
European Commission President Jean-Claude Juncker said: "The European Union is ready to facilitate
more imports of liquefied natural gas from the U.S. and this is already the case as we speak. The
growing exports of U.S. liquefied natural gas, if priced competitively, could play an increasing and
strategic role in EU gas supply; but the U.S. needs to play its role in doing away with red tape
restrictions on liquefied natural gas exports. Both sides have much to gain by working together in the
energy field."

Commissioner for Climate Action and Energy, Miguel Arias Cañete, said: "Diversification is an
important element for ensuring the security of gas supply in the EU. Increasing imports of
competitively priced liquefied natural gas from the U.S. is therefore to be welcomed. This is happening
at a time when EU indigenous gas production is declining more rapidly than foreseen and there is an
accelerated phase-out of coal power plants in the EU."

The EU has co-financed or committed to co-finance LNG infrastructure projects worth over €638
million
 (see list of projects in Annex 2). In addition to the existing 150 billion cubic meters of spare
capacity in the EU, the EU is supporting 14 liquefied natural gas infrastructure projects, which will
increase capacity by another 15 billion cubic meters by 2021, which could welcome imports of liquefied
natural gas from the U.S., if the market conditions are right and prices competitive.
Currently, U.S. legislation still requires prior regulatory approval for liquefied natural gas exports to
Europe. These restrictions need to be addressed and U.S. rules made easier for U.S. liquefied natural
gas to be exported to the EU.
Presidents Juncker and Trump set up an Executive Working Group at their meeting in Washington,
D.C. on 25 July. Since then contacts have taken place between Presidents Juncker and Trump,
between EU Trade Commissioner Malmström and U.S. Trade Representative Lighthizer, and between
the senior advisers of President Juncker and President Trump (Commission Secretary-General Martin
Selmayr and White House Chief Economic Adviser Larry Kudlow).
It has been agreed that on 20 August the Trade Adviser of President Juncker and a senior EU trade
official will travel to Washington, D.C. to meet their U.S. counterparts to continue work on
implementing the Joint Statement. In this context, the EU and the U.S. are working within the
framework of this Executive Working Group to increase U.S. exports of liquefied natural gas to Europe.
Background
The global liquefied natural gas market is becoming increasingly fluid and competitive. Between 2017
and 2023, global liquefied natural gas trade is expected to grow by more than 100 billion cubic meters,
from 391 to 505[1]. The International Energy Agency expects liquefied natural gas imports to Europe
to increase by almost 20% by 2040 compared to 2016 levels.
The increasing gas production in the U.S. and the start of U.S. liquefied natural gas exports to the EU
in 2016 have improved the security of gas supply in Europe and globally. Europe is currently
importing around 70% of the gas it needs, and this share is expected to increase in the coming years.
Liquefied natural gas is also an important part of the EU's diversification strategy; and as the
second biggest single gas market in the world after the U.S., the EU is therefore an attractive option
for the U.S.


In order to increase imports to Europe further, U.S. prices for liquefied natural gas need to be
competitive on the EU market. In addition, the following actions are key to facilitating imports:
Development of liquefied natural gas capacities in the EU and in the U.S.:
● Development of liquefied natural gas capacities in the EU and in the U.S.:
The EU has well developed liquefied natural gas import capacities, with about 150 billion cubic meters
currently spare. At the same time, given their strategic importance for diversification, current
capacities are being expanded and new capacities are being developed
 in the Adriatic Sea (on
the island of Krk in Croatia), in the Baltic Sea, notably in Poland, and in the Mediterranean Sea in
Greece. This would allow for a significant increase of liquefied natural gas imports to the EU.
The U.S. currently has 28 billion cubic meters of liquefaction capacity and is foreseen to add a further
80 billion cubic meters by 2023
, while expanding its liquefied natural gas export terminals.
Regulatory restrictions by the U.S. need to be lifted. The EU has no non-market barriers for
U.S. natural gas coming to the EU. The EU is seeking similar treatment from the U.S. side, in
particular as regards the removal of the requirement for prior approval of liquefied natural gas
exports to the EU.
The current figures show that imports of U.S. liquefied natural gas to the EU have been increasing:
- Since the first shipment of U.S. liquefied natural gas to the EU in April 2016, today EU imports of
liquefied natural gasfrom the United States have already reached 2.8 billion cubic meters
(bcm)
.
- Since early 2016, the EU has received more than 40 liquefied natural gas cargoes from the U.S. In
2017 Europe represented more than 10% of total U.S. liquefied natural gas exports, up
from 5% in 2016
.
For more information
EU-U.S. Joint Statement
Liquefied Natural Gas (LNG) – background
ANNEX
1. EU imports of Liquefied Natural Gas from the United States
2. EU support to Liquefied Natural Gas capacities
LNG terminals built in 2013-2018
 
 
 
Year of
Capacity
Member State
Terminal
EU co-financing
start-up
(bcm/y)
FSRU OLT Oshore
Italy
2013
3.8
 
LNG Toscana
FSRU
€27.4m (CEF) for
Lithuania
2014
4.0
Independence
connecting pipelines
Dunkerque LNG
France
2016
13.0
 
Terminal
€130m awarded (EEPR)
Swinoujscie LNG
Poland
2016
5.0
€202m (ERDF)
Terminal
€332m in total
Malta
Malta Delimara LNG 2017
0.7
€0.7m for studies (CEF)

terminal
 
 
 
 
 
LNG terminals under construction
 
 
 
Year of
Capacity
Member State
Terminal
EU co-financing
start-up
(bcm/y)
Revithoussa LNG
2.0 (from
Greece
Terminal (capacity
2018
€50.8m (ERDF)
5.0 to 7.0)
extension)
Tenerife (Arico-
Spain
Granadilla) LNG
2021
1.3
 
terminal
Gran Canaria
Spain
(Arinaga) LNG
2022
1.3
 
terminal
 
 
 
 
 
LNG terminals on the Projects of
 
 
 
common Interest   (PCI) list
Year of
Capacity
Member State
Terminal
EU co-financing
start-up
(bcm/y)
€108m (CEF) for the
terminal €16m (CEF) for
Croatia
Krk LNG terminal
2019
2.6
evacuation pipeline
€124m in total
LNG terminal in
€2m (CEF) for studies
Greece
2020
5.5
Northern Greece
 
Cyprus LNG
Cyprus
2020
 
€101.2m (CEF)
terminal
Gothenburg LNG
Sweden
2021
0.5
 
terminal
Świnoujście LNG
2.5 (from
Poland
terminal (capacity
2022
 
5.0 to 7.5)
extension)
Shannon LNG
Ireland
2022
6.2
 
Terminal
CEF: Connecting Europe Facility
EEPR: European Energy Programme for Recovery
ERDF: European Regional Development Fund
PCI: Projects of Common Interest
 
[1]Source: International Energy Agency.
IP/18/4920 
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