• The United States is expected to provide approximately 10 billion cubic meters of LNG over the course of the next year.
• Discussions over the deal are in their final stages
• It is unknown how much of the gas will be present in the UK’s energy grid this winter.

The UK local news channel claimed on Monday that British Prime Minister Rishi Sunak is expected to announce a large natural gas deal with the US following the COP27 climate change summit.

The United Kingdom expects the United States to provide approximately 10 billion cubic meters of liquefied natural gas (LNG) over the course of the next year, according to a report. Discussions over the deal are in their final stages, and an announcement may be made within the next two weeks.

However, it was also stated that negotiations over the exact sum are ongoing and that a precise figure may not be disclosed when the agreement is made public. In addition, it is unknown how much of the gas, which will be sold by U.S. corporations, will be present in the UK’s energy grid this winter.

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The United States agreed earlier this year to provide 15 billion cubic meters of LNG to the European Union to assist it in coping with the energy crisis brought on by Russia’s invasion of Ukraine.

The National Grid of the United Kingdom has stated that Britain’s capacity to ensure its gas supply is contingent upon its pricing being sufficiently high to encourage exports from Europe and LNG from nations such as Qatar and the United States.

According to U.S. government projections, three additional LNG plants won’t start producing fuel until 2025. The plants will contribute 5,7 billion cubic feet per day (bcfd) to the planned exports of 11,75 bcfd for the current quarter.

In recent months, wholesale gas prices have skyrocketed as economies reopen from Covid-19 lockdowns and Asia’s high demand for LNG has reduced Europe’s supplies.

This year, over 12 British energy suppliers have failed, affecting over 2 million customers.

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