The Trump administration is claiming early success in its efforts to get Europe to divest itself from Russian energy, saying recent export agreements with Poland are just the beginning.
“We are starting to see the European Parliament, in particular, take action,” Deputy Secretary of Energy Dan Brouillette said in an interview with the Washington Examiner.
Brouillette said that the parliament is beginning to discuss placing new regulations on the Russian Nord Stream II pipeline, which is slated to be built in Germany to supply energy to Europe.
The Trump administration adamantly opposes the pipeline, pushing instead for Europe to diversify its energy supply with imports of U.S. liquefied natural gas.
The European Parliament passed a resolution on Dec. 12 that says the pipeline “poses a threat to European energy security.” On the same day, the U.S. House passed a bipartisan resolution opposing the pipeline. Brouillette claimed that, after initial resistance from Germany, European nations are becoming more willing to view the pipeline in a geostrategic light.
President Trump made headlines earlier in the year by calling Europe “captive” to Russian energy.
Slowly but surely, European leaders are coming around to Trump’s view that they should diversify away from Russian energy, according to the administration.
Brouillette said the deal between the U.S. energy company Sempra and Poland on Wednesday highlights the European resolve to begin backing away from Russia.
Poland agreed to a 20-year deal to buy liquefied natural gas from Sempra’s LNG terminal once it comes online in about two years. The deal would supply 15 percent of Poland’s energy needs every year.
Poland also signed a 24-year deal with Cheniere Energy last month to buy LNG from the company’s Sabine Pass facility in Louisiana.
Brouillette said more European countries will be following Poland’s lead and divesting from Russian energy, including Germany.
He pointed out the announcement that Germany is planning to build its first-ever LNG import terminal to buy U.S. and other countries’ natural gas. Germany’s energy company Uniper is in discussions with Japan’s Mitsui to build an offshore terminal.
The Trump administration expects that Germany will announce one or two more LNG projects in the near future, which is a sign that they are recognizing the risk posed by dependence on Russia.
“They are starting to recognize the threat more and more,” said Brouillette. “There has been one announcement already that Germany is going to fund an LNG import terminal in the northern part of Germany.”
The Energy Department is also approving new facilities on the West Coast to begin shipping U.S. LNG into the Asian market from Mexico.
The Energy Department signed a permit Dec. 14 for Mexico Pacific Limited to export up to 1.7 billion cubic feet per day from its proposed terminal in Sonora, Mexico.
The Energy Department has also taken receipt of two applications from Sempra to export from its LNG terminal project in Baja, but no decision has been granted, yet.
“That’s going to continue to open up markets for U.S. LNG in Asia,” Brouillette said, adding that he just returned from Japan, where demand for U.S. LNG “is absolutely through the roof.”
Joseph Householder, president and COO of Sempra, told the Washington Examiner that the company just signed with Total, Mitsui, and Tokyo Gas to build the facility in Mexico.
“We want to build a very large North American energy infrastructure business, and we believe the administration wants to continue to promote the energy supply from the U.S. in both oil and gas,” Householder added.
The facility is expected to come online in 2023, along with the Port Arthur facility in Texas, he said.
