Exxon expects EU to sign long-term US gas deals, FT reports

The Financial Times reported that ExxonMobil expected the European Union would sign multi-decade contracts for U.S. natural gas as part of its pledge to purchase billions of dollars in American energy.

As part of a broad trade agreement with Washington, the EU pledged in July to buy 750 billion dollars of U.S. power by 2028.

Exxon, as well as the EU, did not immediately respond when contacted for comment.

Peter Clarke is the senior vice president for Exxon’s liquefied gas business. He told The Financial Times that Europe's growing LNG infrastructure makes it "logical" to commit longer-term to supply. Exxon already sells around 80% of its LNG through such contracts.

The newspaper reported that Europe was now the "most important market" for U.S. exports of LNG. Next, the continent will have to "figure out how it can support long-term contracts", the paper quoted him as saying.

Eurostat reports that the U.S. will supply 50% of EU liquefied gas imports by 2024. It also estimates that 17% of EU oil imports and 35% coal imports will come from the U.S. LNG is expected to be the main focus of any expansion in energy trade, as the U.S. is the top exporter.

Clarke, a FT reporter, said that the data showed a significant increase in LNG imports into Europe. Year on year, the figures were up by about 20%. Clarke added that 55% came from the United States. Preetika Parshuraman, Bengaluru. Mrigank Dahniwala and Niveditarjee edited the article.

(source: Reuters)