The US will double its gas exports to the UK. This announcement comes as the US faces the first major test in terms of energy resilience following the conflict in Ukraine.
Rishi Sunak announced a new partnership to help Britain get rid of Russian gas as temperatures drop below freezing.
It would increase energy security, efficiency, and affordability, and ensure that the UK’s supply can be “never again manipulated by the whims or failing regimes”, according to the PM.
It happens as Britain enters winter. Temperatures are expected to plummet to minus eight, in a major test for energy resilience.
National Grid was able to avoid its blackout plan being implemented last month, but a cold winter will pose a greater risk of severe shortages.
According to the Energy Utilities Alliance, a typical household will pay £6.67 per day to heat their home this winter. This is an increase from £2.67 in the same month in 2021. However, a drop to below-zero temperatures will cost you an additional £4.
The US and UK will be collaborating on energy projects that will result in a minimum of nine to ten billion cubic meters of liquified gas being exported to UK terminals each year. This is more than double the amount expected to be exported by the US in 2021.
It has the “immediate objective” of stabilizing energy markets and decreasing demand for Russian energy. While attempting to build long-term resilience, it is accelerating the transition to cleaner alternatives.
This will include promoting nuclear fuels in order to make the transition “safe and reliable”, expediting the development and production of clean hydrogen and encouraging international investment in offshore wind and carbon capture.
A new UK-US joint operation group will steer the partnership, which is led by high-ranking officials from both the British Government (and the White House). The first meeting was held virtually on Thursday.
It is not likely that the Prime Minister or Joe Biden, the US president, will attend.
Sunak stated that the partnership would help Europe end its dependence on Russian energy and lower prices for British consumers.
He stated that the UK and US together would ensure that the global energy price and security of our national supply are not manipulated by any failing regime.
“We have the industry, natural resources and innovative thinking to create a better system and accelerate the clean energy transition.”
In a joint statement, Mr Sunak (and Mr Biden) cited the war in Ukraine and said that it was “more important than ever” for allies to collaborate to build a “resilient international system”.
They stated that their immediate goal was to stabilize energy markets and reduce demand. However, the longer-term goal is to support a stable transition to net zero emissions by 2050. This will help to strengthen our energy security.
“We are creating a Joint Action Group for Energy Security and Affordability in order to accelerate our immediate cooperation to support energy affordability and security in the United Kingdom and Europe.”
