KEY POINTS
- The US warned the EU to implement a trade deal without amendments or risk losing favourable access to American LNG supplies.
- The agreement includes a commitment for the EU to purchase $750 billion worth of US energy by 2028, with a parliamentary vote pending.
- Tight global LNG supply and geopolitical disruptions increase pressure on Europe, which relies heavily on imported gas.
The United States has warned the European Union to implement a previously agreed trade deal without amendments or risk losing favourable access to liquefied natural gas, LNG, shipments from American exporters. The warning was delivered by the US ambassador to the European Union, Andrew Puzder, according to a report.
The development comes amid delays in the EU’s ratification of last year’s agreement between US President Donald Trump and European Commission President Ursula von der Leyen. The ratification process has reportedly been slowed by multiple issues, including diplomatic tensions and broader political disagreements.
Puzder cautioned that the energy component of the agreement, signed at Trump’s Turnberry golf resort in Scotland, could be jeopardised if the EU attempts to modify any part of the deal. He indicated that failure to implement the agreement would reset negotiations and potentially worsen trade terms for the bloc.
He noted that while the United States would continue to trade with Europe, the conditions may no longer remain favourable. According to him, other global buyers are also seeking LNG supplies, which could reduce Europe’s priority access if the deal stalls.
EU Set to Vote on $750 Billion Energy Purchase Pact
The European Parliament is scheduled to vote on the agreement, which includes a commitment by the EU to purchase $750 billion worth of US energy by 2028. The planned purchases cover LNG, crude oil, and civil nuclear technologies.
Puzder argued that the commitment could even have been larger, suggesting that European countries require stable energy supply to sustain their economies and that the US is well-positioned to meet those needs.
He added that Washington is seeking a relationship that encourages energy exports to Europe while ensuring stable demand for American suppliers.
The US envoy also criticised a European Union rule requiring exporters to declare methane emissions by January 1. He said most US producers would find it difficult to comply with the regulation and called for amendments.
According to him, the rule could increase fuel costs and create additional trade barriers, though he expressed optimism that the EU may revise the policy.
The warning comes as global competition for LNG intensifies. Qatar, which produces about one-fifth of global LNG supply, recently halted exports after Iran blocked the Strait of Hormuz. Strikes on Qatar’s Ras Laffan LNG complex have further tightened supply and raised concerns about prolonged disruptions.
Although only about 10 percent of LNG passing through the Strait of Hormuz is routed to Europe, the continent remains vulnerable due to its heavy dependence on imported gas. Some EU countries, including Italy, previously sourced up to one-third of their LNG from Qatar.
