US-UK Near Agreement on Gas Supply Contract of 10 Billion Cubic Meters

Rishi Sunak, Prime Minister of the United Kingdom [Photo by EPA Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media including The Telegraph reported on the 8th (local time) that the United States and the United Kingdom will soon sign an important gas supply contract.

Negotiations for the gas sales contract between the United States and the United Kingdom are nearing completion, and it is expected that UK Prime Minister Rishi Sunak will announce the related details after the conclusion of the 27th United Nations Climate Change Conference of the Parties (COP27) summit currently underway in Egypt. Foreign media predicted that the details of this contract, called the "energy security partnership," will be announced within the next one to two weeks.

Foreign media expect that through this contract, the United States will sell approximately 10 billion cubic meters of gas to the UK next year. This is about two-thirds of the 15 billion cubic meters of gas the European Union (EU) promised to purchase from the US earlier this year. However, negotiations between the US and the UK are still ongoing regarding the sales volume. The US and the UK are also expected to cooperate on nuclear project development through this contract.

Gas is an important energy resource in the UK. Gas accounts for 40% of the UK's total electricity production and holds an 85% share in the household heating fuel market.

For this reason, the UK is currently negotiating gas supply agreements with Norway, Qatar, and others. Germany also wants to sign an agreement with the UK to provide each other with surplus gas during severe cold spells.

Klaus M?ller, President of Germany's Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway, said, "The UK has a long coastline, which is advantageous for importing gas in terms of infrastructure." M?ller added, "The scale of the gas supply network is also important. The larger the supply network, the easier it is to respond to temporary gas shortages."

This content was produced with the assistance of AI translation services.