US EU LNG DEAL                                             

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Context: The United States will work to supply 15 billion cubic metres of liquefied natural gas (LNG) to the European Union this year to help it wean off Russian energy supplies.

About deal:

• The EU is aiming to cut its dependency on Russian gas by two-thirds this year and end all Russian fossil fuel imports by 2027 due to Russia's invasion of Ukraine.

Need of this move:

• Reliance on Russia: Russia supplies around 40% of Europe's gas needs.
• Concerns over security of supply after Russia ordered the switch of gas contract payments to roubles, raising the risk of a supply squeeze and even higher prices.

U.S. plan:

• S. President and European Commission President announced a plan to form a task force to cut Europe's reliance on Russian fossil fuels.
• European Commission will work with EU countries to ensure they are able to receive about 50 bcm of additional U.S. LNG until at least 2030.
• Germany, the EU's biggest importer of Russian gas, has made "significant progress" towards reducing its exposure to imports of Russian gas, oil and coal.

https://www.reuters.com/business/energy/us-eu-strike-lng-deal-europe-seeks-cut-russian-gas-2022-03-25/