Trump’s trade war: European companies urged to increase purchases of US liquefied natural gas as China boosts its imports from Russia.

The EU will release a roadmap on May 6 to phase out its purchases of Russian fossil fuels and continue to decrease Russian imports, according to European Council President Antonio Costa.

“This creates space in the market for imports from other suppliers, which means new opportunities for the US,” Costa stated.

The US is currently the third largest supplier of LNG to the EU. However, the decision to sign new gas purchase contracts rests with companies and depends on their outlook for the market and pricing. According to Costa, many have long-term contracts with Russia. The roadmap, which the European Commission is developing, will provide European companies with tools to terminate these contracts.

Meanwhile, China has stopped buying LNG from the US after a 15% tariff was introduced on its supply. Instead, China will increase its purchases from Russia. Overall, last year Moscow delivered 300% more gas to Beijing than the US did. Moreover, Europe’s rejection of Russian gas caused its price to drop, allowing Chinese energy companies to save money on their gas purchases.