EU: Since the outbreak of Russia-Ukraine in February last year, the European Union has been gradually decreasing its dependency on oil coming from Russia. EU till date remains the largest importer of Russian energy despite its staunch opposition to to Russia’s ‘special military operation’ against Ukraine.
The union now plans to acquire gas from South American nation of Argentina. As of now Argentina is a net importer of gas but is planning to expand production in its own fields. A draft of a Memorandum of Understanding (MoU) has revealed that any gas deal should not hamper with Argentina’s own needs. The draft is slated to be signed on Monday.
The draft read “The participants endeavour to cooperate towards enabling a stable delivery of liquefied natural gas (LNG) from Argentina to the European Union.”
EU energy needs
As one of the largest markets which constitutes advanced industrialised and growing economies, EU has to fulfill major chunk of its energy needs from outside. The Union seeks to replace Russian energy imports with clean energy and is also planning to cut down on gas usage for to meet its climate change goals.
Since the invasion of Ukraine the union has increased its import of gas from Qatar. The European Union last year denied entry to several Qatari officials after it was found that members from European Parliament took bribes to award FIFA World Cup 2022 to Qatar. After this Qatar made threats to European Union that they will cut gas imports if ban on travelling is not lifted.
Argentinean gas expansion
The country possesses world’s second largest proven unconventional gas reserves. The country is looking to expand production at Vaca Muerta, a shale formation in Patagonia region. Lisa Fischer, Programme Lead at climate think tank E3G, has called on the EU to assist Argentina in developing renewable energy and other solutions that will ensure minimum damage to environment.
“By the time the Argentinean gas comes online – and they don’t even have the full export infrastructure to do so – I don’t think the European Union will need that gas any longer,” Fischer said.
The draft also stated that two sides would work together in the areas of renewable energy and hydrogen fuel and would work to cut down on methane emissions.
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