The European think tank Center on Regulation in Europe (CERRE) released an independent report, with key contributions from the Partnership to Address Global Emissions (PAGE), which underscores the critical role that flexible U.S. LNG plays in Europe’s energy security and decarbonization pathway.
Top findings of the CERRE report include:
- Access to flexible LNG supplies, particularly through LNG agreements with North American suppliers, is crucial in moderating price spikes during energy crunch scenarios.
- Forward contracting for flexible LNG leads to lower and more stable gas prices, which enhances Europe’s energy security and fosters conditions conducive to re-industrialization.
- The price stability benefits of forward contracting for flexible LNG extend to electricity and hydrogen, which are often closely linked to gas prices.
- Forward contracting for flexible LNG can avoid the extensive fiscal interventions and macroeconomic instability that Europe experienced during the 2021-2023 energy crisis.
Access the executive summary and full summary here.