Europe's Rush to Replace Russian Gas with US LNG Brings New Risks
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Europe has rapidly reduced its reliance on Russian gas and replaced it with US LNG, but this brings new risks like exposure to US politics and Atlantic hurricanes.
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The Biden administration's pause on new LNG export approvals threatens future US gas supplies to Europe.
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Even with abundant US gas, Europe remains vulnerable to global market dynamics that could drive prices up.
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A bigger reliance on imported US gas gives the US outsized influence over Europe and risks delaying Europe's transition to renewable energy.
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Chemical and heavy industries in Europe are struggling with much higher gas prices than competitors in the US, leading some companies to shift investments across the Atlantic.