Wednesday 7 December 2022

More LNG imports from the US

 Today's announcement of a deal between the UK and US governments "to increase energy security and drive down prices, as part of a new energy partnership" raises worries over increased dependence on the United States. It was the too-close linking of financial interests which led to the crashing of our economy in 2008. One notes that the States promise only to strive to supply 9-10 billion cubic metres of liquefied natural gas during the next year.

There will be cooperation over the use of hydrogen as a fuel, but no guarantees about the means of production. While there are promising developments in the field of "green" hydrogen (such as Atome's in Paraguay), most industrial hydrogen today (about 95% by some estimates) is derived from fossil fuels, in processes which themselves add to carbon dioxide emissions

The net effect of the agreement it seems to me is to provide a safety net for US-based oil and gas producers and do nothing to accelerate the transition to non-carbon energy production/


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