ENERGY SECURITYCan the U.S. Find Enough Natural Gas Sources to Neutralize Russia’s Energy Leverage Over Europe?
The prospect of conflict between Russia and NATO countries over Ukraine has raised fears of an energy crisis in Europe. To weaken Russia’s leverage, the Biden administration is working to secure additional gas shipments to Europe from other sources. “Putin may be willing to bet that an energy pricing crisis in Europe will sow popular discontent, scotch the energy transition and help Russia win concessions on NATO’s positioning of troops and missiles. But there is little evidence that Europe will react that way,” says an energy expert.
The prospect of conflict between Russia and NATO countries over Ukraine has raised fears of an energy crisis in Europe. Russia provides nearly half of Europe’s natural gas, and some leaders worry that Moscow could tighten the flow if hostilities break out. To weaken Russia’s leverage, the Biden administration is working to secure additional gas shipments to Europe from other sources.
Global energy policy expert Amy Myers Jaffe explains how much gas is available and what’s involved in rerouting it.
How dependent is Europe on natural gas, and who are its main suppliers?
Natural gas represents about one-fifth of all primary energy used across Europe. It accounts for about 20% of electric power generation and also is used for heating and industrial processes.
Russia is the largest supplier of natural gas to Europe, sending about 40% of the continent’s supplies shipped by pipeline. The next-largest suppliers via pipeline are Norway (22%), Algeria (18%) and Azerbaijan 9%. Europe also receives natural gas that is liquefied and delivered by ship.
In recent months, European imports of liquefied natural gas, or LNG, from the U.S. and elsewhere reached record levels at around 400 million cubic meters per day. To put that in perspective, a single LNG cargo ship can hold roughly 125,000-175,000 cubic meters of natural gas – enough energy to warm 17 million British homes for one winter day.
What are the biggest constraints for exporters on sending more gas to Europe?
LNG is made by cooling natural gas to minus 260 degrees Fahrenheit (minus 162 degrees Celsius), which reduces its volume by a factor of more than 600. Natural gas is piped to a port, processed in a liquefaction plant and then loaded into specialized insulated, temperature-controlled tankers for shipment by sea.
To receive LNG, an offloading port must have a regasification plant that converts the LNG back to a gaseous form so it can be sent by pipeline to end users. Both liquefaction plants and regasification plants cost billions of dollars and take multiple years to build.
