Putin Made USA a Net Global Energy Player
In 2021, the USA exported a total of 188 billion m3 of natural gas to 41 countries. 56% of this export was made to overseas countries as LNG (liquefied natural gas). EU countries had an important place in this export.
USA Became a Natural Gas Exporter:
The USA has been a net natural gas exporter since 2017, and this export reached a record level in 2021. U.S. natural gas exports were mostly made to Mexico and Canada in small quantities by pipelines until 2000. Increasing natural gas production and low production cost with the shale gas revolution of the USA increased its competitiveness in the international market. In 2021, the USA exported a total of 188 billion m3 of natural gas to 41 countries. 56% of this export was made to overseas countries as LNG (liquefied natural gas). EU countries had an important place in this export.
The LNG market of the USA, which has been an annual net natural gas exporter since 2017, has developed quietly, gradually increasing, including Japan, China, and South Korea. We anticipated this development and published our report titled "The market war will begin in LNG" in 2013. 2021 was the first year that US LNG exports exceeded pipeline natural gas exports. With the Russian occupation of Ukraine, the doors of the European market were opened to the developing LNG export market of the USA.
All the conditions were prepared by the west for the Russian attack on Ukraine and it was finally desired. Putin attacked Ukraine and the US plans to reduce the EU's energy dependence on Russia and open a market for itself since the early 2000s have come to fruition.
The latest move of the US Energy Plan
The USA had made its preparations to recreate the equation in the Global Energy game, and the process it had planned had come to an end. Putin entered Ukraine and presented to the United States the key to the long-term embargo on a gold platter. The USA has been slowly entering the European gas market since 2017. This process was well planned and LNG terminals in Europe were built with very high capacity. The first embargo for Russian gas was set for the Nord Stream 2 Project, which arrived in Germany and was very close to completion. While the project was barely making progress, the invasion of Ukraine began and Germany abandoned this project, which was nearing its end and for which Gazprom had spent $11 billion. It also gave up the additional 55 billion m3 natural gas that will come from this line in a year.
The EU's energy-hungry industrial giant Germany was finally convinced. It was said that formulas were sought to close the gap created by the embargo to be applied to Russian gas, in which the USA played a leading role. However, the plan was long in advance that Norway decided to increase production. The United States has announced that it will supply at least 15 billion cubic meters of additional liquefied natural gas to the EU by the end of this year, rapidly increasing it to 50 billion cubic meters. The LNG era had begun in natural gas.
Now is LNG Time
The European Commission has outlined a new energy roadmap designed to reduce the European Union's (EU) dependency on Russian gas by two-thirds in just one year. The plan envisions ending all dependence on Russian fossil fuels "well before" 2030. For the EU, it also proposes a massive increase in the use of renewable energy sources, biogas and hydrogen.
Germany got to work right away, as it is the rare country in Europe that does not have an LNG terminal. The Ministry of Finance announced that it will spend 3 billion Euros for 4 LNG terminals in the next 10 years and that these terminals will be operational in the winter of 2022-2023.
In 2016, the USA started to oppose the Nord Stream 2 pipeline, which would upset the balance of energy geopolitics in this region.
In addition to the Nord Stream 2 pipeline, the USA's developing allergy to natural gas pipelines has also hit the (East-Med) pipeline, which is planned to carry the gas from the Eastern Mediterranean to the EU. At the beginning of this year, the USA announced that it was withdrawing its support from the project. The EU's 23 major LNG terminals, operating at one-third capacity, would now be filled by US LNG vessels.
Where the USA could not reach, additional gas could be supplied from the LNG terminal in Egypt, which also processes Israeli gas. An LNG terminal was planned for Southern Cyprus. Moreover, floating LNG storage and processing vessels (FSRU) were now also providing great convenience for the transfer of gas. For the Eastern Mediterranean gas, the wind had turned to LNG.
How many birds did the USA kill with one stone?
The USA had killed several birds with one stone. The EU's decision to reduce its energy dependence on Russia was put into practice with great speed, and Russia had lost a great market and economic power. Thus, a large transatlantic market was opened for US gas. The US's decisiveness in NATO and thus its influence on the EU also increased. Since the international tension environment created in this period and the constant market for arms dealers are another issue, we do not enter.
If we continue on the golden key given by Russia to the USA in order to redefine the global energy equation, we should say that the USA has gained a great advantage. The USA struck gold in energy with this golden key and opened many doors. The energy game is re-established. The energy geopolitics of the Eastern Mediterranean will also be affected by this new game. This will directly concern us.
It seems that the world will experience the effects and risks of the USA being a net exporter and a playmaker in global energy from now on.
