API says LNG answer to European energy woes

WASHINGTON, March 6 (UPI) -- Ukraine and Eastern European allies could benefit for the U.S. shale gas revolution, but bureaucracy is in the way, the American Petroleum Institute said.

API Upstream Director Erik Milito said exporting more liquefied natural gas from the United States could help allies in Europe who are dependent on Russia for their natural gas supplies.

An "energy revolution" in the United States means the country is now one of the world's leading natural gas producers. More exports in the form of liquefied natural gas could add a layer of security to the European energy market, he said.

"Unfortunately, the slow pace of federal approval for U.S. LNG export facilities has stalled the construction of infrastructure, weakening our competitive position," he said in a statement Wednesday.

The majority of Russian natural gas sent to European markets passes through the Soviet-era transit network in Ukraine. Russian energy company Gazprom said this week post-revolution Ukraine could face consequences because of its mounting debt.

A chorus of voices said LNG from the United States could help European consumers. By 2019, Europe is expected to diversify its energy market by bringing in substantially more natural gas from Azerbaijan.

A special permit is needed to send LNG from the United States to countries without a U.S. free-trade agreement. The United States doesn't have a free-trade agreement in force with any European country.