France withdrew from negotiations with the United States on LNG purchases for $ 7 billion

The French energy company Engie refused to sign a 20-year contract with the American company NextDecade from Texas for $ 7 billion. The parties studied the possibility of supplying liquefied natural gas to France from the Rio Grande LNG LNG plant, which the Americans planned to build in the United States.

Engie and NextDecade's negotiations were initially negatively perceived by environmental activists who opposed such a contract.

In addition, official Paris was not delighted with the possible prospects. He expressed serious concern about gas production by hydraulic fracturing in the US states of Texas and New Mexico, as a result of which large amounts of methane are released into the planet's atmosphere. The French viewed US LNG supplies as violating their country's long-term climate strategy.

Engie decided not to continue consulting with NextDecade on this project

- the representative of Engie clarified on November 3, 2020 to the French newspaper Le Monde.

Friends of the Earth, an international environmental organization operating in 74 countries around the world, expressed satisfaction with the decisions taken by the French government and Engie. It should be noted that Engie is 35,7% owned by the French government and is Gazprom's partner in the Nord Stream 2 project.

At the same time, the American Republican Senator Kevin Kramer wrote a letter to the Elysee Palace. In it, he threatened French President Emmanuel Macron that "the act could have negative consequences" and will certainly affect relations between Washington and Paris.

Following the aforementioned letter, another letter was sent from the USA to France. This time signed by 24 Republican senators and not so emotional. Legislators cited data from the US Department of Energy, according to which methane emissions from American LNG "along the entire chain" are lower than those of Russian pipeline raw materials.
  • Photos used: Wmeinhart - Wolfgang Meinhart, Hamburg /
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  1. boriz Offline boriz
    boriz (boriz) 5 November 2020 18: 03
    Everything is very simple. Macron and Engie don't give a damn about fracturing in the US.
    And the thing is that Engie is a victim of the SP-2 sanctions. It's just that a response came.
    The United States is no longer very afraid and no one is going to endure losses because of their arrogance, at least with impunity.
    1. Pivander Offline Pivander
      Pivander (Alex) 5 November 2020 18: 58
      Not certainly in that way. Any companies whose shares are listed on the US stock exchanges are still afraid of the very US. The United States has a lot of leverage for such sanctions.

      There are also many where US equipment, made under US patents, made on US equipment or having US software, is used.

      And don't forget the dollar after all. The same dollar that pays for most of the world's hydrocarbons. Hopefully for now ...
      1. boriz Offline boriz
        boriz (boriz) 5 November 2020 19: 01
        But the situation is changing. At least, judging by the actions of Engie. And just in case, we hid behind Greta Thunberg.
  2. Afinogen Offline Afinogen
    Afinogen (Afinogen) 5 November 2020 18: 10
    France refused to negotiate with the US on the purchase of LNG

    And she did the right thing. They will buy LNG from us and cleaner gas (without any breaks lol ) and the price is lower, and if they really want to, we can hold the pipe for them. Every whim for your money .
    1. boriz Offline boriz
      boriz (boriz) 5 November 2020 18: 37
      The pipe is already there. Engie has been working closely with Gazprom for a long time.