The US will boost supplies of liquefied natural gas (LNG) to UK terminals under a new deal revealed on Wednesday.
This is part of an energy initiative announced by Rishi Sunak, the UK prime minister, and Joe Biden, the US president, aimed at increasing energy security and drive down prices, according to a statement issued by the two governments.
Under the new ‘UK-US Energy Security and Affordability Partnership’, the UK and US would “drive work to reduce global dependence on Russian energy exports, stabilize energy markets and step up collaboration on energy efficiency, nuclear and renewables,” the statement said.
A new UK-US joint action group, led by senior officials from the UK government and the White House, would steer this initiative.
Boosting LNG supplies
To help deal with the resulting rise in the cost of living, the group would work to ensure the market delivers sustained increases in the supply of LNG to UK terminals from the US and would collaborate on energy efficiency measures.
As part of this, the US would strive to export at least 9-10 billion cubic meters of LNG over the next year via UK terminals, more than doubling the level exported in 2021 and capitalizing on the UK’s import infrastructure, the statement said.
The statement did not provide any details regarding these supplies.
UK imports LNG via the Grain LNG terminal, South Hook LNG, and the Dragon LNG terminal.
The country has already substantially increased imports of LNG in 2022 compared to the last year, mostly from the US.
“This will be good for both UK and European partners as we look to replenish gas storage next year. To fulfil this shared objective, both governments will work to proactively identify and resolve any issues faced by exporters and importers,” the statement said.
