U.S.-Italy LNG Supply and Infrastructure Cooperation
In March 2022, the United States and European Commission (EC) jointly announced "further, concrete steps" to help replace natural gas that Europe has been importing from Russia, creating significant opportunities for increased U.S. LNG exports to Europe in the short and long-term. The EC has outlined a plan to replace 101.5 billion cubic meters (Bcm) of Russian gas this year, including up to 15 Bcm of added U.S. imports this year and signing contracts for imports of an additional 50 Bcm of U.S. LNG through 2030. However, there are challenges to meeting these targets. Europe’s current LNG import capacity is a barrier for high-volume increases in U.S. LNG supply in the short-term and regulatory bottlenecks and financing availability constrain new LNG import infrastructure investments needed for long-term supply diversification. To meet climate goals, it is important that U.S. LNG exporters continue efforts to decarbonize all aspects of the LNG supply chain. It is also critical that new LNG infrastructure in Europe reduces the greenhouse gas intensity of operations and is compatible with clean hydrogen.