Daily Management Review

UK To Unveil U.S. Gas Deal Following Climate Change Summit: Report


According to a report in the Telegraph, British Prime Minister Rishi Sunak is prepared to make a significant natural gas announcement with the United States following the COP27 climate change summit.
The report stated that negotiations for the deal are nearing their conclusion and that an announcement may occur within the next week or two. Britain is hoping that the United States will commit to providing about 10 billion cubic meters of liquefied natural gas (LNG) over the upcoming year.
However, it also noted that negotiations over the precise sum were still ongoing and it was possible that when the deal was announced, no precise sum would be disclosed.
The amount of the gas, which American businesses will sell, that will be used by the UK's energy system this winter is also unknown, according to the Telegraph.
In order to assist the European Union in addressing the energy crisis brought on by Russia's invasion of Ukraine, the United States earlier this year agreed to provide 15 billion cubic meters of LNG to the EU.
The ability of Britain to secure its gas supply would depend on its prices being high enough to draw LNG imports from countries like Qatar and the United States as well as exports from Europe.
Until three new plants are fully operational in 2025, the capacity of U.S. LNG producers to supply more fuel will only slightly increase.
The plants will increase the estimated 11.75 billion cubic feet per day (bcfd) of exports this quarter by an additional 5.7 bcfd.
As economies emerge from COVID-19 lockdowns, wholesale gas prices have risen sharply in recent months. At the same time, there is less LNG available for export to Europe due to high demand in Asia.
This year, more than 2 million customers have been impacted by the collapse of about 12 British energy suppliers.