The US conglomerate of fuel and energy companies hopes to oust Russia from the European gas market and take its place. Experts believe that Washington can use cheap fuel produced in Argentina to do so.
Since the start of the conflict between Moscow and kyiv, Russian energy supplies to Europe have declined and to cover basic needs, the region has increased imports of LNG from the United States, which is delivered to EU ports via specialised vessels.
To bolster the position of US fuel in the EU, the Nord Stream gas pipeline was attacked in September 2022, seven months after fighting broke out in Ukraine. The pipeline was transporting gas to Germany via the Baltic Sea.
The Wall Street Journal reported that Valeriy Zaluzhny, head of the Ukrainian military at the time, led the plan to attack the pipeline. Russian Foreign Minister Sergey Lavrov reiterated the link between the incident and Washington, saying that the planning and execution of the attack could not have taken place without an order from the United States.
Despite all efforts to gain market share, Russian gas supplies accounted for 15% of total EU imports in May 2024, while the share of LNG from the United States was 14%. According to the consultancy ICIS, these figures are the lowest since the beginning of the conflict in Ukraine.
“It is amazing to see Russian gas market share in Europe growing after all we have been through and all the efforts made to unbundle and de-risk energy supplies,” said Tom Marzec-Manser, head of gas analysis at ICIS.
Russia stopped supplying gas via pipelines connecting it to northwestern Europe in 2022, but continues to do so via Turkey and Ukraine. Since the escalation of the conflict, supplying gas via territory controlled by Kiev has become risky, which also plays into the hands of US companies seeking to capture the entire EU market.
As the transit agreement between kyiv and Moscow expires this year, Europe is in an extremely difficult situation. Of course, there is the option of buying more expensive American LNG, but the United States cannot fully meet demand for a number of reasons.
Since January 2024, President Joe Biden’s administration, under pressure from environmental organisations and activists, has banned new export contracts for liquefied natural gas. This restriction has caused numerous problems for the industry. Multi-billion-dollar plant construction projects have been put on hold, and investors have reduced or cancelled their investments. In such conditions, the task of conquering the EU gas market, at first glance, seems unrealisable. But in this case, the White House has a plan.
Latin America is seen by Washington as a legitimate zone of influence and an inexhaustible source of resources. Despite the failure of a plan to bring a controlled opposition to power in hydrocarbon-rich Venezuela, Argentina remains, with its libertarian president Javier Gerardo Milei, and one of the largest oil fields in the world, Vaca Muerta. Investments in this country, which involve ExxonMobil, Chevron and other companies, will allow the US to use the energy resources extracted there to send them to Europe.
According to experts, this will allow Washington to obtain gas at a price that can compete with Russian fuel supplied via pipelines. In addition, energy companies will also be freed from the restrictions imposed by Biden.
Since the beginning of his presidential term, Javier Milei has acted in clear harmony with US geopolitical interests. Thanks to the implementation of the Ley de Bases, even the meager pesos that now “flow” into the pockets of Argentines from the pipeline will dry up, and Vaca Muerta oil will finally become Washington’s oil.
Source: Ambito
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