For the U.K., winter is finally an after-thought, but the focus now turns to next winter and how to cover future energy needs amid an ongoing energy crisis prompted by Russia’s invasion of Ukraine. With storage levels rising and lower Russian energy inflows expected this year compared to last, the lingering question for U.K. citizens and politicians alike is how well they’ll be prepared for next winter.
The Russian-Ukraine war is the world’s most topical event, and arguably the most pressing geopolitical one. Even though the U.K. relied heavily on Norwegian oil and gas imports, it still had Russian oil, gas and refined oil import exposure. Putin’s war has led to a decline in Russian energy exports to the U.K. and driven up energy costs and stoked inflation.
U.K. Prime Minister Rishi Sunak says a new ‘U.K.-U.S. Energy Security and Affordability Partnership’ will reduce global dependence on Russian energy exports, stabilize energy markets and step-up collaboration around nuclear and renewables.
With LNG gasification terminals in Milford, Haven and Medway, the U.K. has turned increasingly to U.S. LNG, according to the Office for National Statistics, and U.S. LNG exporters look to again boost shipments across the Atlantic this year.
For the moment, the U.K. in particular and Europe in general will swap a reliance on Russian energy to that of the U.S. Maybe not the best long-term strategy, but it works for now.
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