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The United States and the European Union have agreed to work towards boosting natural gas trade. an issue that President Donald Trump pressed forcefully at this month`s NATO meeting in Brussels.
Shipping more U.S. gas to Europe is one of the matters European Commission President Jean-Claude Juncker agreed to take under consideration on Wednesday at a White House meeting with Trump that yielded progress in a trade dispute between the United States and the EU.
Specifically. Juncker said the EU will build more terminals to import liquefied natural gas. or LNG. a form of the fuel super-chilled to liquid form for shipment by sea. He did not specify whether he was referring to new terminals in addition to those already planned. or whether the EU would invest in the large on-shore plants or more affordable floating facilities.
`We agreed to a strengthened and strengthening of our strategic cooperation with respect to energy.` Trump said in a press conference with Juncker. `The European Union wants to import more liquefied natural gas. LNG. from the United States and they`re going to be a very very big buyer. We`re going to make it much easier for them. but they`re going to be a massive buyer of LNG.`
To be sure. Europe has already begun buying more natural gas from the United States. with Portugal and Spain emerging as two of the most steady buyers over the last two years. Britain. Italy. Lithuania and the Netherlands have each taken a few cargoes. while Malta and Poland have received a single shipment.
Trump took an assertive stance two weeks ago in Belgium. harshly criticizing Germany for backing a pipeline that would directly link the country with Russia. Europe`s dominant natural gas supplier.
The Nord Stream 2 line has faced criticism because it would allow Russian state-controlled energy giant Gazprom to bypass Ukraine`s pipeline system. That would allow Moscow to exert political pressure on Eastern and Central Europe by shutting off gas supplies. while minimizing the impact on the lucrative Western European market.
The U.S. has long opposed the Nord Stream pipeline system. Trump took up the issue this month while also seeking to press Germany to spend more on defense and make concessions on trade with the United States. Washington has put forward U.S. LNG as a way for Europe to reduce its dependence on Russian natural gas.
`They`ll be able to diversify their energy supply. which they want very much to do. and we have plenty of it.` Trump said.
In prepared remarks. Juncker said strengthened cooperation on energy sends a message. although he did not say for whom the message was intended.
`The EU will build more terminals to import liquefied natural gas from the U.S. This is also a message for others.` he said.
It is not yet clear how much Wednesday`s meeting changed existing plans to bolster U.S.-European energy trade. but some LNG-related stocks appeared to get a boost from the news.
Shares of LNG export terminal operator Cheniere Energy popped after Dow Jones first reported the news. closing 2.8 percent higher and tacking on another 1.7 percent after the close of trading. Tellurian. a company developing an integrated gas well-to-export terminal business. ended the day up 2 percent and rose nearly 3 percent in extended hours.
U.S. oil and natural gas producers Cabot Oil &. Gas. EOG Resources and Devon Energy were some of the top performers in the S&.P Energy sector.
