Key Points
- The EU is considering a plan to “group-buy” U.S. liquefied natural gas (LNG).
- The goal is to meet its commitment to buy $750 billion in U.S. energy under a new trade deal.
- The EU might use its “AggregateEU” platform, which was created to replace Russian gas.
- Analysts are skeptical that the EU can realistically meet the massive purchase target.
The European Commission is considering a plan to group European companies to buy more U.S. liquefied natural gas (LNG). The move is part of the EU’s effort to meet its massive commitment under the new trade deal with the United States, which requires it to purchase $750 billion in U.S. energy over the next three years.
A Commission spokesperson said they could use their “AggregateEU” platform, a system created to help Europe replace Russian gas after the Ukraine war. The spokesperson added that a new round of this scheme targeting U.S. LNG could be organized as soon as September if needed.
The plan comes as many analysts have expressed skepticism about the deal, calling the $750 billion energy purchase target unrealistically high, especially since the EU’s demand for fossil fuels is expected to decline as it shifts to green energy.
The massive energy purchase also raises questions about the EU’s commitment to its climate goals. The Commission insists the deal will not undermine its green targets, arguing it’s a short-term, three-year agreement.
However, a recently published factsheet suggested the EU could be matching companies with U.S. LNG supplies for a much longer period, all the way until 2050, which appears to contradict their climate pledges.
