EU Seeks Diversified Gas Sources from Qatar and Canada as US Tensions Mount

EXCERPT: The European Union is exploring new gas sources from Qatar and Canada to lessen its reliance on US liquefied natural gas amid escalating tensions with the Trump administration over Greenland. Meanwhile, Apollo Commercial Real Estate Finance has sold its $9 billion loan portfolio to the insurance arm of its parent company, Apollo Global Management.

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The European Union (EU) is reconsidering its energy strategy in the face of growing concerns over its dependence on liquefied natural gas (LNG) from the United States, following President Donald Trump's public statements about taking over Greenland. EU Energy Commissioner Kadri Simson stated that the EU is keen to diversify its LNG imports to reduce its reliance on the US, according to a report by Reuters.

One of the potential suppliers that the EU is eyeing is Qatar, which is the world's largest LNG exporter. Qatar has already signed a memorandum of understanding with the EU to increase cooperation in the energy sector. Simson also mentioned Canada as another potential source for LNG, as the country has significant reserves and is aiming to become a major exporter.

Meanwhile, Apollo Commercial Real Estate Finance (ARCF), a property lender managed by Apollo Global Management, has agreed to sell its $9 billion loan portfolio to the insurance arm of its parent company, Athene Holding Ltd. The sale came after ARCF's stock price consistently traded below its book value.

According to a statement from Apollo, the transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions and regulatory approvals. The deal represents a strategic move for Athene, which is looking to expand its insurance and reinsurance operations through acquisitions and partnerships.

The sale of ARCF's loan portfolio is not the first time that Apollo has transferred assets between its various business units. In 2017, the firm sold a $10.7 billion portfolio of residential mortgage-backed securities to its credit arm, Athene Asset Management.

The EU's efforts to diversify its LNG sources come at a time when tensions between the EU and the US have been escalating over issues such as trade, climate change, and Greenland. Trump's comments about buying Greenland, which is an autonomous Danish territory, were met with strong criticism from EU leaders. The EU is the world's second-largest consumer of LNG after Japan, and the US is currently its largest supplier.

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