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FX.co ★ France asks for lower price for American gas

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Forex Humor:::2022-11-03T12:08:44

France asks for lower price for American gas

A refusal of Russian gas has become a real test for friendly relations between Europe and the United States. Now, the US companies are supposed to be the leading gas suppliers to Europe and have a right to establish prices. However, such behavior may wreck the friendship. Just after Russia cut its gas supplies to Europe, the US companies made an attempt to gain control over the local market.

To provide regular supplies, the US has considerably boosted gas production. Thus, in September, gas production totaled a stunning 2.8 billion cubic meters a day. The US companies have started to produce a record amount of gas amid mounting demand, primarily from Europe. The actions of the US could be explained by its desire to free Europe from dependence on Russian gas. The US is so eagerly trying to reach the goal that it has run ahead of schedule for pumping gas into underground storage. However, European countries have to pay too much for such support. France's Economy Minister urged the United States to offer cheaper prices for liquefied natural gas. "We expect more from the US administration to get LNG at a cheaper price with a long-term approach," Bruno Le Maire said. He also highlighted that “American liquefied natural gas is now accounting for 45 percent of the continent's LNG imports, compared to 28 percent last year.”

A bit earlier, German Economy Minister Robert Habeck accused the United States and other countries of charging "astronomical prices" for gas.

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