EU could quit Russian gas in a year with US LNG, says energy chief

Don't want to miss the best from Business Standard?

The European Union could phase out Russian gas within six to 12 months by replacing it with US liquefied natural gas, and the United States communicated this position to EU officials this week, US energy secretary Chris Wright told Reuters on Friday. 

Wright was speaking in Brussels, where he met EU energy commissioner Dan Jorgensen on Thursday to discuss ending Europe's purchases of Russian energy. The EU is negotiating legal proposals to phase out imports of Russian oil and gas by January 2028, with a ban on short-term contracts kicking in from next year. 

"I think this could easily be done within 12 months, maybe within six months," Wright said, of how quickly the EU could phase out Russian gas. 

"I definitely voiced the opinion we could do it faster. On the US side, we could do it faster, and I think it would be good if those dates were moved up even more. I don't know that that's going to happen, but that was dialogued," he said, referring to his meeting with Jorgensen. 

A European Commission spokesperson did not immediately respond to a request for comment. 

The US is ramping up pressure on Europe to cut off energy revenue to Moscow, seeking to end the war in Ukraine. As Russia's most lucrative export, its fuel revenue has helped fund the war. 

Jorgensen said on Thursday it was unacceptable the EU continued to import Russian energy - but that the 2028 phase out was ambitious and would ensure EU countries do not face energy price spikes or supply shortages in the meantime. 

EU Commission President Ursula von der Leyen said this week the bloc was considering a faster phase-out of Russian fossil fuels as part of new sanctions against Moscow, without specifying how Brussels would do this. 

New sanctions require unanimous approval from all 27 EU members. Hungary and Slovakia have so far opposed sanctions on Russian gas - which is why the EU proposed the 2028 phase out, in a law which can be approved by a reinforced majority of EU countries. 

"The faster we phase out, the sooner you put pressure on Russia," Wright said. 

Europe is expected to purchase around 13 per cent of its gas from Russia this year, down from roughly 45 per cent before Russia's full-scale invasion of Ukraine in 2022, according to EU figures.