Big Shale Gas Deal May Not Spark EU Energy Revolution
A major UK energy firm has struck a deal hailed by Prime Minister David Cameron as a step towards energy security but as the European Commission launches discussions on 2030 climate and energy policies opinions are divided as to which direction the EU should take the unconventional fossil fuel.
Nearly two million British homes will be heated by shale gas from the United States within five years as a result of the deal between the UK-based energy company Centrica and Cheniere, a US liquified natural gas (LNG) provider, the first of its kind in Europe.
Centrica, the UK’s largest gas company, will purchase the LNG from Cheniere, reconvert it into its original gaseous state and distribute it to British consumers.
The US has kept a tight lid on its shale gas exports, but the move raises the prospect of cheap and secure supplies of gas to Europe, as international conflict has disrupted conventional supply chains.
Cameron hailed the deal as a harbinger of energy security.“Future gas supplies from the US will help diversify our energy mix and provide British consumers with a new long-term, secure and affordable source of fuel”, he said.
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