Wednesday, December 7

UK to announce US gas deal after climate change summit -Telegraph


Article content

British Prime Minister Rishi Sunak is poised to announce a major gas deal with the US after the COP27 climate change summit, The Telegraph reported on Monday.

The United States will promise about 10 billion cubic meters of liquefied natural gas (LNG) to Britain, the newspaper said, adding that the deal which is in final stage is expected in about a week or two.

Article content

Earlier this year, the United States agreed to supply 15 billion cubic meters of liquefied natural gas to the European Union to help it wean off Russian energy supplies.

Article content

Britain’s National Grid had previously said that Britain’s ability to secure supply would depend upon its gas prices being high enough to attract exports from Europe and liquefied natural gas from countries such as Qatar and the United States.

Sunak on Monday at the COP27 climate change summit said the war should accelerate efforts to wean the world off fossil fuels.

British government officials are in talks with major American LNG suppliers about a deal to bolster energy imports, Sky News had previously reported.

Former British Prime Minister Liz Truss wrote an op-ed in the Times newspaper calling on Europe last month to keep energy exports flowing during the winter.

Wholesale gas prices have soared in recent months as economies reopen from COVID-19 lockdowns and high demand for liquefied natural gas in Asia pushed down supplies to Europe.

Around 12 British energy suppliers have already collapsed this year, affecting more than 2 million customers. (Reporting by Mrinmay Dey in Bengaluru Editing by Chris Reese and Josie Kao)



financialpost.com