Some in the bloc agree. With this plan, “the 2040 targets seem to be less and less feasible,” said one EU diplomat, granted anonymity to speak candidly.
“It is pragmatic, and energy security seems to be a much more burning question than climate,” the diplomat added. “We’ll have to see how the [Commission] justifies this.”
Shaky grounds
So far, the Commission’s justification is that the move will help lower people’s bills.
In the text, the EU executive argues that taking several measures — including “exploring the option” of long-term gas contracts by “securing gas liquefaction rights” and giving “preferential loans” to investors — “could lead to a significant short-term reduction in retail prices.”
In fact, any investment in new LNG plants will be a “medium-term story,” said Laura Page, a gas analyst at the Kpler commodities firm, since it takes “four to five years” for facilities to come online.
Given that deals are typically signed by utilities and project operators, she added, “I don’t know how much help the EU will be at this point.”
