U.S. to boost LNG exports to Europe with sanctions on Russia

The latest decision by the U.S. Senate to impose new sanctions on Russia over alleged involvement in the 2016 elections is aimed at boosting U.S. LNG exports to Europe, according to a report.

Responding to potential new sanctions, Gazprom’s deputy chief, Alexander Medvedev, was quoted by Interfax as saying that the implementation of sanctions is aimed at ensuring a larger stake of American LNG in the European market.

The Russian giant has dismissed competition from US-produced LNG to its piped natural gas in the European market, with high transportation costs hampering its competitiveness.

Medvedev went on to say the company hopes that the United States president, Donald Trump will not approve the newly proposed sanctions.

The United States Senate is strongly opposing Gazprom’s Nord Stream 2 pipeline project, claiming it would have severe impacts on EU’s energy security.

Austria and Germany have noted that sanctions on Russia would lead to European companies breaching U.S. law due to their involvement in Russian energy projects, Reuters reports.

Five energy companies, Shell, Engie, OMV, Uniper and Wintershall, have committed to each committed to providing financing and guarantees for up to 10 percent of the total cost of the Nord Stream 2 pipeline project, which is currently estimated to be €9.5 billion ($10.6 billion).

LNG World News Staff