The United States will ramp up LNG supplies to the European Union as part of a plan laid out March 25 to help Europe wean itself off Russian gas imports in response to the country's invasion of Ukraine.

The U.S. intends to ensure an additional 15 billion cubic meters of LNG volumes for the EU market in 2022 to help replace some of the 155 Bcm of gas the bloc gets from Russia.

The EU is aiming to slash Russian gas demand by two-thirds by year-end and eliminate Russian energy imports entirely by 2027. The U.S. will work to supply an additional 50 Bcm of LNG per year to the EU by the end of the decade.

"We're coming together to reduce Europe's dependence on Russian energy," U.S. President Joe Biden said at a joint news conference with European Commission President Ursula von der Leyen in Brussels. The U.S. took steps in early March to ban imports of Russian oil, gas and other energy.

"[Vladimir] Putin is using Russia's energy resources to coerce and manipulate its neighbors," Biden said in Brussels, in reference to the Russian president. "He's used the profits to drive his war machine."

The EU already laid out a plan, dubbed REPowerEU, to end its reliance on Russian energy, including by boosting LNG imports, diversifying pipeline sources and increasing production of renewable gases. The bloc has also set gas storage filling requirements to ensure supply for the winter. Some analysts think the commission's assumptions about LNG are unrealistic given international competition for the fuel.

"We want, as Europeans to diversify away from Russia toward suppliers that we trust, that are our friends, and that are reliable," von der Leyen said at the news conference.

Net-zero front of mind

For the anticipated ramp-up of U.S. LNG to the EU, the price formula should "reflect long-term market fundamentals," the partners said in a joint statement.

"In particular, price formula should include consideration of Henry Hub Natural Gas Spot Price and other stabilizing factors," they said.

A joint task force, chaired by representatives from the White House and the European Commission, will be established to execute the partnership, which also includes a commitment to reduce overall gas demand by utilizing clean energy.

The crisis in Ukraine is "a catalyst that will drive the investments we need to double down on our clean energy goals and accelerate progress toward our net-zero emissions future," Biden said. Both the U.S. and EU are aiming for carbon neutrality by 2050.

Biden outlined plans to accelerate the adoption of smart technologies, electrification and renewable hydrogen, which he said would "increase energy security, economic security and national security."

Work will also be undertaken to reduce the greenhouse gas intensity of all new LNG infrastructure and associated pipelines, including by using renewables to power onsite operations, reducing methane leakage and making infrastructure hydrogen-ready.

The European Commission said it will work with EU member states to accelerate regulatory approvals for new LNG import infrastructure. A group of European think tanks said March 23 that the EU can replace Russian gas demand without constructing new terminals.

"I know that eliminating Russian gas will have costs for Europe, but it's not only the right thing to do from a moral standpoint, it's going to put us on a much stronger strategic footing," Biden said.

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