Trump Says U.S. to Compete With Russia for Europe Gas Market

Europe is poised to become more reliant on gas imports as output from the Groningen field in the Netherlands, the continent’s largest, winds down.

SEATTLE (Oil Monster): U.S. President Donald Trump eased his tone about a Russian natural gas pipeline to Germany after a one-on-one meeting with President Vladimir Putin, shifting from the harsh criticism he’d levied in Europe last week.

“We are going to be selling LNG and will have to be competing with the pipeline and I think we’ll compete successfully, although there is a little advantage locationally” because Russia is closer to buyers in Europe, Trump told reporters at a news conference with Putin after their meeting in Helsinki on Monday. “I’m not sure necessarily that it’s in the best interest of Germany or not but that was the decision that they made.”

The Nord Stream 2 pipeline, which would double Russia’s current capacity to deliver natural gas direct to Germany under the Baltic Sea and circumvent Ukraine, a major supply route to the European Union, has been a sore point between the U.S. and its allies over the past months. Last week, Trump slammed what he called German dependence on Russian energy, saying it made the nation “captive” to Moscow. The Kremlin said Trump’s attacks were economically motivated and an attempt to promote U.S. liquefied natural gas in Europe.

Trump last year signed a law giving him the right to sanction companies involved in the Nord Stream 2 pipeline project. Royal Dutch Shell Plc, BASF SE’s Wintershall unit, Uniper SE, OMV AG and Engie SA have agreed to provide Russia’s Gazprom PJSC with financing for the 9.5 billion euro ($11 billion) pipeline and could be at risk of penalties.

Putin said he sees space for cooperation with the U.S. on energy, while saying Russia may be willing to extend gas transit accords with Ukraine if the two nations’ state companies can resolve legal disputes about fees and pricing.

Europe is poised to become more reliant on gas imports as output from the Groningen field in the Netherlands, the continent’s largest, winds down.

Courtesy: www.bloomberg.com