U.S., EU Plan Joint Commitment to Bolster Europe’s Fuel Supplies

(Bloomberg) -- The U.S. and the European Union are preparing to address any risks to Europe's energy supplies amid rising geopolitical tensions related to Ukraine.

At a meeting to be held Feb. 7 in Washington, the allies plan to declare that they will work to avoid disruptions to fuel flows on the continent, according to a draft statement from the EU-U.S. Energy Council seen by Bloomberg.

Europe is in the midst of an energy crisis marked by historically low reserves of natural gas, causing prices of the fuel to soar to record levels in recent months. Russia -- the continent's largest gas supplier -- has amassed more than 100,000 troops on the border of Ukraine, though President Vladimir Putin has repeatedly said his country has no plans to invade.

It is “unacceptable to use energy supply as a weapon,” according to the document, which is set to be released at the end of the EU-U.S. meeting and may still be revised. The allies are set to discuss “intensifying cooperation in the short-term to ensure sufficient energy supplies for the EU and its neighborhood.”

The trans-Atlantic partners will aim to ensure that Europe receives additional supplies of liquefied natural gas in the short term if shipments via pipelines are derailed. They also plan to focus on diversifying energy provides and means of transport, the document said.

Storage facilities in the bloc are currently about 40% full on average, EU Energy Commissioner Kadri Simson said earlier this week.

EU and U.S. officials are preparing for the possibility of Moscow curbing gas flows to Europe should the dispute result in economic sanctions on Russia. Europe is dependent on Russia for about 40% of its natural gas supplies.

The Biden administration and the European Commission are already searching the world for surplus gas to send to Europe should a conflict erupt. The Commission, the EU's executive arm, has repeatedly said that in the longer term, the best solution to cut its reliance on imported fossil fuels is the bloc's Green Deal strategy to reach climate neutrality by mid-century.

The EU and the U.S. next week are set to underline their “commitment to reaching net zero emissions by 2050 and to working together to ensure a rapid decarbonization and clean energy transition,” the joint document said.