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EU Eyes Demand-Pooling Plan to Meet $750 Billion U.S. Energy Pledge

The Commission proposes adapting its 2022 demand-pooling scheme to align U.S. LNG supplies with EU companies’ voluntary buying power.

Model of natural gas pipeline and EU flag, July 18, 2022. REUTERS/Dado Ruvic/Illustration/File photo
Courtesy of the European Commission; Credit: Mauro Bottaro
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Overview

  • The European Commission is weighing a U.S.-focused round of its AggregateEU program, potentially launching in September to bundle corporate LNG orders under the three-year, $750 billion energy framework.
  • Under the pact, the EU must purchase about $250 billion of U.S. energy annually—a target analysts call unachievable since 2024 imports were only $76 billion and current regasification capacity covers just $60–70 billion of LNG.
  • U.S. LNG export capacity is set to rise by nearly 50% as new terminals come online, but those projects will not be operational quickly enough to meet Europe’s short-term demand surge.
  • Flexible pricing allows U.S. LNG exporters to prioritize higher-paying Asian markets, heightening competition and the risk of upward pressure on global energy prices.
  • Climate advocates warn the agreement risks entrenching Europe in prolonged fossil fuel dependence and undermining its binding 2030 and 2050 decarbonization commitments.