The US and UK have launched a new joint effort to stabilise energy prices in the face of continued efforts to reduce Europe dependency on Russian oil and gas.
It comes as Britain faces a cost-of-living crisis driven largely by soaring costs for heating and power as a result of the ongoing Russian war in Ukraine.
The White House said the new “US-UK Energy Security and Affordability Partnership” will be led by a “Joint Action Group for Energy Security and Affordability” consisting of senior officials from the Biden administration and No 10 Downing Street.
The bilateral effort is set to “accelerate” the “immediate cooperation” between Washington and London on efforts to “stabilise energy markets, reduce demand, and ensure short-term security of supply,” an “immediate shared goal” which the White House said is “underpinned by the longer-term objective of supporting a stable energy transition to achieving net zero emissions by 2050, which in itself will strengthen our energy security”.
Prime Minister Rishi Sunak’s office said the new joint partnership will “drive work to reduce global dependence on Russian energy exports, stabilise energy markets and step up collaboration on energy efficiency, nuclear and renewables” and announced that the US now plans to more than double its’ level of liquified natural gas exports to the UK from the amount recorded in 2021.
Number 10 also announced that the increased US exports will reach somewhere between nine and ten billion cubic metres over the next year, and will be delivered to LNG terminals in the UK via tankers.
“This will be good for both UK and European partners as we look to replenish gas storage next year. To fulfil this shared objective, both governments will work to proactively identify and resolve any issues faced by exporters and importers,” the Prime Minister’s office said.
In a statement, Mr Sunak said the partnership “will ensure the global price of energy and the security of our national supply can never again be manipulated by the whims of a failing regime”.
“We have the natural resources, industry and innovative thinking we need to create a better, freer system and accelerate the clean energy transition. This partnership will bring down prices for British consumers and help end Europe’s dependence on Russian energy once and for all,” he added.
The new Anglo-American partnership comes as the UK faces a cost-of-living crisis driven largely by increased energy prices as a result of the ongoing Russian war against Ukraine.
British consumers have faced spiking prices for electricity that have led the Sunk government to implement price caps, with the public only expected to pay a maximum of £2,500 until the price caps are reviewed in April 2023. The UK’s National Grid Authority has also warned that “those deepest, darkest evenings in January and February” could see blackouts between the hours of 4.00 pm and 7.00 pm.
As inflation continues to impact the British economy, the government has also begun rolling out £324 cost of living payments to assist eligible Britons. The payments will be delivered through direct bank deposits over the next week.
