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Additional purchases of U.S. LNG from the European Union would help ease the tightness in global natural gas markets and reduce consumer and industry prices in Germany, Michael Lewis, chief executive at German energy giant Uniper, told Reuters on Wednesday.
Earlier this week, U.S. President Donald Trump urged the EU, again, to buy more American oil and gas to avoid tariffs.
“When Trump sends more gas to Europe it will reduce the world gas price,” Uniper’s Lewis told Reuters.
Lower global gas prices mean reduced energy prices for German households and industries, Lewis said, adding “that’s why it’s positive.”
Germany has imported U.S. LNG cargoes at its newly built floating receiving terminals after the end of the Russian pipeline gas deliveries.
So far this month, at least six LNG cargoes loaded in the United States and initially en route to Asia have been diverted to Europe as European natural gas prices have rallied in recent weeks while Asian prices drop with weaker demand and high inventories.
Asian spot LNG prices have risen in the winter period, but not enough to keep a wide enough premium to Europe’s benchmark prices to incentivize selling U.S. cargoes to Asia, according to shipping data and analysts.
Meanwhile, President Trump on Monday urged the European Union to step up its purchases of crude oil and liquefied natural gas from the U.S. if it wants to avoid tariffs.
“The one thing they can do quickly is buy our oil and gas,” Trump told the media on Monday, as quoted by Bloomberg. “We will straighten that out with tariffs, or they have to buy our oil and gas.”
That was the second time President Trump has urged Europe to buy more American energy, after threatening “TARIFFS all the way!!!”” in December.
On his first day in office, the President lifted a so-called pause on new LNG export terminal construction that the Biden administration imposed on the industry following one study that claimed LNG exports had a higher carbon footprint than coal.
