EU to buy $ 750 billion US energy in a trade agreement

The EU has agreed to buy energy worth $ 750 billion from the US as part of the trade agreement of both parties, which can focus on LNG, fuel and nuclear fuels, US leaders and the European Union said July 27.

After months of negotiations, US President Donald Trump said the two largest economies in the world achieved “the biggest agreement ever made” to overcome their trade imbalances which included a greater US energy purchase by the block.

“We have more energy than other people,” Trump told reporters at one of the golf resorts in Scotland. “It’s wise that they buy a lot of energy … it solves a lot of problems.”

After meeting with the president at the resort to complete an agreement, European Commission President Ursula Von Der Leyen confirmed the European Union and the US would increase their “energy cooperation”.

“The purchase of US energy products will diversify our supply sources and contribute to European energy security,” Von Der Leyen said in a statement. “We will replace Russian gas and oil with significant purchases from US LNG, oil and nuclear fuel.”

Following the Russian invasion of Ukraine, the EU has banned Russian crude oil imports since December 2022 and oil products since February 2023 while planning to stop gas imports at the end of 2027.

More US energy

Details of the purchase remain vague, but some media reports suggest that the EU will try to buy US $ 250 billion/year for a three -year period.

EU imported 80.4 million MT from LNG worth EUR41.1 billion in 2024, while oil imports reached 453.4 million MT and worth EUR261.8 billion, according to Eurostat.

The US is the largest supplier of oil and LNG to the EU during the first quarter, contributing 15% of the oil imports and 50.7% of LNG imports, the eurostat rate shows.

After planning to reach the EU at a rate of 20% previously in April before suspending it, Trump in July threatened to wear a 30% levy.

Both parties finally ended with an agreement where the US collects 15% tariffs on most EU imports except for steel, aluminum, and pharmacy products. The European Union also agreed to invest $ 600 billion in the US to kill trading tension while opening “trade at zero tariffs,” Trump said without describing.

“This is a big problem … this is good for everyone,” said Von Der Leyen.
Source: Platts