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US Threatens EU LNG Access Loss Over Trade Deal Amendments

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The United States has issued a stark warning to the European Union: ratify the recently signed trade agreement with the US without any amendments, or risk losing its current, highly favorable access to liquefied natural gas (LNG) shipments from American exporters. This ultimatum comes from Andrew Puzder, the US ambassador to the EU, who emphasized that any changes to the deal, particularly concerning energy terms, could jeopardize the entire agreement. The pact, signed last year at President Trump's Turnberry golf resort, commits the EU to purchase approximately $750 billion worth of US energy products, including LNG, oil, and civil nuclear technologies, by 2028.

Puzder stated that modifying the agreement would effectively return both parties to the starting point, potentially resulting in less favorable terms for the EU. He also highlighted the competitive global LNG market, noting the impact of Qatar's export halt and the Ras Laffan LNG complex strikes, which have tightened supply and increased competition for European buyers. The EU currently sources significant LNG volumes from Qatar, with some member states relying on it for up to a third of their needs.

Puzder further argued that the EU should have committed to a larger energy purchase, framing the deal as a critical economic lifeline. He also raised concerns about an EU methane emissions regulation set to take effect on January 1st, claiming it would be impossible for most US producers to comply and would drive up fuel costs, potentially leading the EU to reduce trade barriers. The EU Commission has assured this regulation won't harm imports.

The final vote in the European Parliament is scheduled for Thursday, but the deal must still be negotiated with member states, who may resist the methane regulation provisions. Puzder concluded that any changes to the final agreement would force the US to reassess its commitment to selling energy to Europe.