V4 wants U.S. gas to cut dependence on Russia. An interesting development but…

…what do you expect from this initiative, will the US do something in your opinion?

Antony FroggattSenior Research Fellow, Energy, Environment and Resource Governance, Chatham House

It is certainly an interesting political development. However, I am not sure that it would make a significant difference to the gas supply in Central Europe on even the medium term. This is primarily because of price, the cost of shipping LNG is relatively high, between $5-7mbtu, so even with low gas production prices in the US, then the US gas is going to be more expensive than the market price in Europe. Clearly, some countries may be willing to pay a premium for fuel diversification on the short term, but having permanently higher energy prices than your neighbours is difficult.

The other question relates to the US and whether they would be willing to sell gas to Europe. This is possible, but the gas price in Asia is higher and so if US was to start exporting gas I would expect it to go Eastward.

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