Energy Security

Liquefied natural gas—including LNG from the United States—has played a significant role in helping Poland, Lithuania, and other nations in Europe reduce their dependence on Russian gas.

The United States has been exporting LNG to Europe since 2016, with Poland being one of the biggest global buyers of USLNG. The Polish company PGNiG (now part of PKN Orlen), for instance, has imported USLNG through the Świnoujście terminal on the Baltic coast and signed several long-term sales and purchase contracts with U.S. companies. This is part of Poland’s effort to diversify its energy sources and totally eliminate its dependence on Russian gas.

Lithuania has also been working to increase its energy security. In 2014, Lithuania opened a floating LNG import terminal in the Port of Klaipėda, enabling the country to import gas from non-Russian sources, including Norway and the United States. The Klaipėda terminal, which is named “Independence,” has helped Lithuania break free from the predatory pricing practices of Gazprom, Russia’s state-owned gas monopolist.

Germany, on the other hand, has only recently decided to replace Russian pipeline gas with LNG. Despite this late start, Germany is now investing in the construction of several land-based LNG terminals (in Brunsbüttel, Wilhelmshaven, and Stada) and is installing floating terminals in the interim.

The European Union has also played a role in helping these (and other EU) countries increase their energy security. The EU has been promoting and helping fund the construction of new gas infrastructure, including LNG terminals and interconnectors, to allow for the diversification of gas supply. In 2019, the EU adopted the Gas Directive, which requires pipelines from third countries to the EU to comply with EU energy market rules, including unbundling and third-party access.

Despite their differences, these three countries have been working to create a more diverse and secure energy landscape in Europe. USLNG exports to Europe have helped to break the dominance of Russian gas in the region, and the LNG import terminals and pipelines that have been built in Poland, Lithuania, and Germany have helped to create new routes for gas to enter the European market.