UK prime minister Rishi Sunak is reportedly set to announce a major liquified natural gas (LNG) deal with the US after urging delegates to honour promises on climate change at COP27.
According to the Telegraph, the deal has been in the works since before former PM Liz Truss resigned and while details are scarce, it would see billions of cubic meters of LNG shipped to the UK.
Meanwhile, Sunak’s speech at the COP27 climate summit on Monday suggested a renewed commitment to climate finance, as he reiterated the UK’s £11.6bn contribution, a promise that such a gas deal would seemingly contradict.
Sunak outlined that “investing in renewables is precisely the way to insure ourselves against the risks of energy dependency”.
By directing public and private finance towards the protection of the planet, new jobs and clean growth could be created, he added.
Following a Rystad report that found LNG to cause ten times the amount of carbon emissions of piped gas due to an energy-intensive process where it is cooled to -160C, it is likely that Sunak will face some scrutiny over the deal.
The deal comes amid warnings of power cuts this winter by National Grid PLC (LSE:NG.), with Russia’s invasion of Ukraine causing fears of gas shortages across Europe and countries scrambling recently to ensure energy supplies for the coming months.
American supply of LNG could aid the UK to end reliance on Russia for fuel, but suggests a different energy strategy than laid out in Sunak’s COP27 speech, highlighting renewed UK investment into fossil fuels as well as potentially stretching UK energy dependency to the US.
As well as gas, the deal might include increased cooperation on nuclear power projects and a drive on renewables, according to the Telegraph which cited a Whitehall source.