French energy expert, professor at the Institute of Political Science Thierry Bro pointed out that Europeans are buying American gas at a price much higher than the cost of its production, and this is a source of tension between Europe and America.
“The cost of producing LNG in the US is $6 per million British thermal units,” the economist said in an interview Wednesday with French newspaper Les Ecos, and when it reaches European ports, the cost rises to $13, while while in Europe it sells for $37 per million British thermal units.
The French expert added: “In an attempt to lower prices, the European Commission has proposed the introduction of a special settlement mechanism called the Iberian Standard. But it will not be easy to apply this option in financial settlements with the United States.
Bruce explained: “In recent years, European politicians, including the French, have ignored investments in the gas sector because of the possibility of switching to renewable energy sources. As a result, the Europeans became completely dependent on the United States.”
Trade disputes between Europe and the United States are expected to be one of the topics of discussion during the visit of French President Emmanuel Macron to Washington.
The French President will arrive in the United States as part of a state visit at the official invitation of the White House to open a new page in bilateral relations after last year’s crisis and its attendant tensions after the deal for the supply of submarines in Australia, which was negotiated by Washington, Canberra and London in September 2021 without the knowledge of Paris. And to the detriment of his interests.
Observers say that despite efforts to make the visit a success, it is unlikely to overcome contentious issues, especially US violations of trade rules and principles of relations between allies.
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