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EU will band together to source gas, LNG

Provsional plans to phase out all Russian hydrocarbons by 2027 

Provsional plans to phase out all Russian hydrocarbons by 2027 

Provsional plans to phase out all Russian hydrocarbons by 2027 

We "need to take good lessons from how we tackled the procurement of vaccines. I think that there is also support for common purchase of gas among the member states," EU Commission vice president Maros Sefcovic said.
 
He was speaking at the opening of a two-day summit. 
 
The Commission is working to secure gas, LNG and even hydrogen. They agreed, in principle, to phase out Russian gas, oil and coal by 2027. Of the 90% of gas it imports, 40% comes from Russia. Russia is also the world's second-largest oil supplier. 
 
In January before the Russian invasion of Ukraine prime minister Scott Morrison stepped up and suggested Australia, as the world's largest LNG exporter, could supply Europe. The only issue was the generally fossil-friendly PM didn't check in with industry, which has contracts it needs to supply. 
 
In a statement sent to Energy News Australian trade minister Dan Tehan said Australia stands ready to "support our friends and allies". 
 
"Australian LNG exports are expected to grow this financial year, Australian LNG exporters are ideally placed to meet any demand that may arise globally," he said then. 
 
Rapidly changing energy dynamics have lit a fire under possible new LNG projects, and may spur buyers to start signing contracts with Woodside for supply from its Scarborough gas project, sanctioned in November. 
 
The Perth energy giant has signed few contracts for the 5 million tonne per annum development and is yet to farm down its 73.5% stake. Provided its merger with BHP's petroleum arm goes through mid-year this rises to 100%. 
 
This week news broke that a 2019 report commissioned by Woodside from the CSIRO actually found against the company's claims its project would reduce emission in Asia. The report disappeared and Woodside continued the same line all the way to sanction and beyond. Activists are now calling for a review of its environmental plan submissions and even board renewal. 
 
In a swift turnaround, the EU has conceded it has been far too dependent on large amounts of piped gas from Russia for too long and the Kremlin's ability to turn off supply coupled with increasing sanctions means it must now reverse dependence. 
 
The International Energy Agency attacked the Kremlin at the beginning of the year for supplying less gas as demand and prices rose. 
 
At the beginning of March, days after the invasion of Ukraine, it released a 10-point plan to help Europe wean itself from Russian gas. 
 
"The low levels of gas storage in January brought us to big difficulties... where we have been kind of scrambling for additional gas for European consumption," Sefcovic said. 

 

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

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