US to 'keep tightening screws' on Russian energy projects: official

US sanctions on Russian oil and natural gas are working and the US is going to keep tightening sanctions to stymie Russia's efforts to develop new ways to export fossil fuels, US Assistant Secretary of State for Energy Resources Geoffrey Pyatt said April 23.

The Biden administration's sanctions are having a real impact on LNG, Pyatt said, citing reports that Russia's Novatek suspended production at its Arctic LNG 2 project in part due to sanctions.

"We're going to keep tightening the screws, we're going to continue to designate a broad range of entities involved in development of other key energy projects, future energy projects as well, and associated infrastructure," Pyatt said at an event hosted by the Center for Strategic and International Studies.

Sanctions could target energy projects such as the Vostok oil project, the Ust-Luga LNG terminal and the Yakutia LNG project, Pyatt said.

"Our sanctions are targeting entities involved in the procurement of material and advanced technology for future energy projects, and the service providers, which are essential to Russia's hope to grow its future capacity," Pyatt said.

Looking at the big picture, Pyatt said the US goal is to ensure that as European companies turn away from Russia and turn to more reliable suppliers, there are very limited opportunities for Russia to secure new markets.

Shifting energy map

Data from the International Energy Agency show Russia's share of internationally traded natural gas, which stood at 30% in 2021, will fall to 15% by 2030, and Russia's revenue from natural gas sales will fall from around $100 billion to less than $40 billion 2030, Pyatt noted.

Europe's transition away from Russian energy has progressed much faster than predicted and it marks a permanent shift in the international energy map, Pyatt said. "Russia has decisively proven itself to be an unreliable supplier of energy that will choose to weaponize its energy resources as a tool of political coercion," he said.

Pyatt also touted the fact that the US exports 124 Bcm of LNG per year, global, and that another 120 Bcm/year of US capacity is slated to come online by 2030.

"So what you are going to see is the United States as the world's largest and unrivaled provider of LNG for years and years to come, at the same time as we have become a major exporter of crude oil," he said.

Pyatt also noted the importance of diversifying energy supplies. "We need to make sure that we don't replace an era of dependence on Russian fossil fuels, with dependence on critical minerals, and critical mineral processing in the People's Republic of China," he said.