Australia has offered to provide Europe with liquefied natural gas (LNG) supply amid escalating tensions between Ukraine and Russia. Russia has threatened the continent with cutting the gas supply to retaliate against them and the United States (US).
On Wednesday, senior White House Officials said the Biden administration was contacting major gas-producing nations and companies, and reviewing the global supply of gas, including from Australia, to be ready in the upcoming days with emergency cargoes.
“The efforts that we are undergoing now – those are ‘if, when necessary,’ so that we are prepared in that scenario of conflict where supplies are being curtailed, either due to damage of infrastructure or by design. We will be able to have these suppliers standing ready to increase their supply into Europe,” the officials said.
In an official statement, US Secretary of State Antony Blinken discussed measures to ensure that the global energy supply is not disrupted if Russia attempts to weaponise natural gas by cutting gas supply to Europe amid heightened tensions with Ukraine.
“We’re in discussions with governments and major producers around the world about surging their capacity. We’re engaged in detailed conversations with our allies and partners about coordinating our response, including how best to deploy their existing energy stockpiles,” Blinken said.
Grattan Institute’s program director of energy, Tony Wood, said the US was trying to diversify Europe’s gas supply to offset the secondary negative consequences of Russia’s destabilising acts in the region.
In addition, Wood said cutting gas supply to Europe wouldn’t be in Russia’s economic interest; however, he noted the Kremlin’s attempt to reduce the gas flow on previous occasions.
Likewise, British Foreign Secretary, Liz Truss, urged Europe to become less reliant on Russian gas for economic security. “We’re pushing for alternatives in energy supply, so that nations are less reliant on Russia for their gas,” Truss said.
Australian federal government led by Prime Minister Scott Morrison confirmed that the country was prepared to aid the global mission being put together by US President Joe Biden’s government to prevent disruption of gas supply to Europe.
Minister for Resources, Water and Northern Australia Keith Pitt said, “As a leading and reliable global exporter of LNG, Australia stands ready to assist with any request for further supplies.” While speaking with Sky News, Pitt said, “We will, of course, continue to meet our existing contracts, but where there is a shortfall, Australia will always look to support our friends.” However, Pitt refused to confirm if Australian officials were actively discussing gas supply with their European counterparts.
Resources Minister Keith Pitt tells @ThomasOriti there are no formal requests to meet a gas shortfall in the event of supplies to Europe being cut by Russia, but that Australia would be able to supply uncontracted gas if needed
— Gavin Coote (@GavinCoote) January 26, 2022
A third of Europe’s natural gas comes from Russia. Apart from Australia, the US and Qatar are amongst the largest LNG exporters. However, Australia faces the difficulty of distance, which reduces the likelihood of direct LNG shipments to Europe.
Germany and France are concerned that a (larger) war in Ukraine would do major damage to European economies
— Benjamin Norton (@BenjaminNorton) January 26, 2022
Europe already has an energy crisis (in the middle of winter), and the EU still relies on Russian gas and oil imports: Moscow remains the biggest energy exporter to the EU https://t.co/K156rniPpi pic.twitter.com/iR2462A8Mr
During an interview with ABC on Thursday, Wood said, “I’m sure the conversations are being had [but] it doesn’t mean that Australia actually supplies its gas to Europe, Australia is a long way from Europe,” adding, “It could mean that gas that otherwise might go to Asia is diverted to Europe, and then Australian gas replaces that gas in Asia.”