In case of Russia-Ukraine conflict, US discusses EU gas supply with energy companies: Source-SABC News

The U.S. government has consulted with several international energy companies on an emergency response plan to supply Europe with natural gas if the conflict between Russia and Ukraine disrupts Russia’s supply, 2 Two U.S. officials and two industry sources said Reuters On Friday.

The United States is concerned that Russia is preparing for a possible new military attack on the invaded country in 2014. Russia has denied plans to attack Ukraine.

The European Union relies on Russia for about one-third of its gas supply, and US sanctions on conflict can disrupt its supply.

The interruption of Russia’s gas supply to Europe will exacerbate the energy crisis caused by fuel shortages. Record electricity prices have pushed up consumer energy and business costs in some countries, causing protests.

State Department officials asked the company where additional supplies would come from if needed. Two debate-savvy industry sources told Reuters on condition of anonymity due to problem sensitivity.

The two companies told U.S. government officials that the world’s gas supply was tight and that there was little gas to replace the large amount of gas from Russia, according to industry sources.

The talks between the State Department and energy companies were led by senior energy security adviser Amos Hochstein, a senior US State Department official said on condition of anonymity. The State Department did not ask companies to increase production, officials added.

“We talked about various contingencies and everything we were doing with our nation-state partners and allies,” sources said.

“This was done by the European Commission, but also by the energy company. It’s no exaggeration to say that we talked about concerns and various contingencies, but what about production? I didn’t have any questions. “

U.S. officials not only asked companies what they needed to increase supply, but also whether they were capable of increasing exports and, if necessary, postponing maintenance of the site, sources said. rice field.

It was unclear which company the US authorities contacted. Royal Dutch Shell, ConocoPhillips and Exxon declined to comment when asked if they were contacted. Chevron Corp, Total, Equinor, and Qatar Energy did not immediately respond to requests for comment.

A second industry source said he was asked if his company was capable of deferring gas field maintenance if needed.

A spokesperson for the US National Security Council did not comment on US talks with energy companies, but confirmed that an emergency response plan was underway.

“Evaluating potential spillovers and finding ways to reduce them is good governance and standard practice,” said a spokesman.

“The publicly available details in this regard only show the broader details and seriousness we are discussing and are ready to take significant steps with our allies and partners.”

Moscow warned the west by rallying troops near Ukraine over the past two months with the support of separatists fighting Kiev troops in eastern Ukraine after the Crimean Peninsula in Ukraine was seized in 2014. rice field.

Biden previously told Russian President Vladimir Putin that the new Russian move in Ukraine would result in sanctions and an increase in US presence in Europe.

Russia has denied plans to attack Ukraine, stating that it has the right to move troops to its land as it pleases.

A second industry source said, “The United States has promised Europe’s support in the event of an energy shortage due to conflict or sanctions.”

“Amos intends to go to major LNG producers and countries like Qatar to see if they can help the United States,” he added, referring to Hochstein.

If the pipeline supply from Russia to Europe declines, European buyers will need to look for ultra-cooling gas cargo to make up for it.

US liquefied natural gas (LNG) exports will surge this year, making it the world’s top LNG supplier. Europe is competing with LNG supplies from suppliers such as the United States and Qatar with China and Japan, which are facing an energy crisis.

In case of Russia-Ukraine conflict, US discusses EU gas supply with energy companies: Source-SABC News

Source link In case of Russia-Ukraine conflict, US discusses EU gas supply with energy companies: Source-SABC News

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