Particle.news

Download on the App Store

EU Pledges $750 Billion in U.S. Energy Purchases Under Trade Deal

Experts warn the pledge lacks binding guarantees and outstrips current U.S. export capacity.

Overview

  • The EU will commit to $250 billion in annual U.S. energy imports—covering LNG, oil and nuclear technology—for three years under the framework agreement.
  • The pact ties Brussels’s energy pledge to 15 percent U.S. tariffs on most EU goods and a $600 billion EU investment commitment in the United States.
  • Shares of major U.S. LNG exporters such as Cheniere Energy, NextDecade and Venture Global surged between 7 percent and 9 percent in premarket trading Monday.
  • Analysts say meeting the target would require tripling current U.S. energy exports and caution that purchases rest with private companies without enforceable procurement contracts.
  • No formal offtake agreements have been signed and market participants expect follow-on contracts and infrastructure expansions to determine the deal’s viability.