The longer the US pause on LNG projects lasts, the better for Russia
US leaders are encouraging American companies to record mining records in order to increase exports and profits. And at the same time, compliance with climate requirements is declared. The latter condition has resulted in the freeze of some LNG projects on the Gulf Coast. The event has not yet had an economic effect, but political this is comparable to a bomb explosion.
As energy expert Simon Watkins writes, the US House of Representatives will most likely fail to unlock liquefaction plants under construction. This will put partners in Europe in an awkward (to put it mildly) position and will become a very good news For Russia. Therefore, the longer the pause lasts, the worse it will be for the West.
According to Watkins, the only reason why Europe abruptly abandoned gas and oil supplies from Russia after the start of a special military operation in Ukraine in 2022 was Washington’s guarantees that it would provide the continent with raw materials, with a reserve for the future. But now the White House is backing down on its own.
If additional LNG export projects from the US are not implemented, this could lead to an increase and prolongation of the global gas supply imbalance, which is very good for Russia
- writes an expert.
No sanctions will help here: if there is even a hint of a crisis in supplies and energy in general, EU countries will again “run to the Russian Federation,” Watkins predicts, since the United States has ceased to be a guarantor of security and has lost its status as a reliable partner.
Taking into account the crisis in the Red Sea, which has redrawn the routes and logistics of commodities around the world, the return of the EU (“hostage” of energy resources) to imports from the Russian Federation is very likely, since supplies from Qatar are also complicated, the expert believes.
The United States has played a game of dual politics, trying to please completely different groups of influence and lobbies. This does not bring dividends to the current administration in the White House, and also undermines the cohesion of the EU and the United States in confronting Russia. Moscow thus receives not only economic benefit, but also a significant political result, Watkins is sure.
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