EU sees record Russian LNG imports in 2024 – FT

Volodymyr Tunik-Fryz — Saturday, 21 December 2024, 16:31

The EU has seen its imports of Russian liquefied natural gas (LNG) reach a record high this year, despite the bloc's efforts to reduce its dependence on gas from this country after the beginning of Moscow's full-scale invasion of Ukraine.

Source: Financial Times (FT), as reported by European Pravda

Details: As of mid-December, Europe had imported a record 16.5 million tonnes of Russian LNG, exceeding last year's imports of 15.18 million tonnes, based on information from commodity data provider Kpler.

This figure also exceeds the previous record of 15.21 million tonnes imported in 2022.

"What we have seen this year is surprising. Instead of gradually reducing Russian LNG imports, we are increasing them," said Ana Maria Jaller-Makarewicz, an analyst at the Institute for Energy Economics and Financial Analysis.

After Russia's full-scale invasion of Ukraine in 2022, the European Union set a target to stop imports of any Russian fossil fuels by 2027. Despite this, the influx of super-chilled gas into European ports remains on the rise.

Unlike pipeline gas imports, which have been reduced to a minimum, and Russian oil and coal, which are banned in the EU, Russian LNG imports are still enabled and rising, indicating that a "panicking" Europe is still trying to wean itself off cheap supplies, Jaller-Makarewicz said.

The LNG supplied from Russia's Yamal terminal to Europe is priced significantly lower than the gas imported from the United States.

Europe previously relied on Russia for approximately two-fifths of its gas imports, primarily through pipelines. Today, Russian gas, including both pipeline and LNG, makes up only about 16% of the EU's total gas supply.

EU officials are confident that the bloc can do without Russian fuel, even if it requires paying higher prices for gas from other sources. However, Russian LNG has represented 20% of the EU's total seaborne fuel imports this year, up from 15% last year, according to ship tracking data.

Not all Russian LNG brought to Europe is consumed within the region; some of the fuel is transshipped to other parts of the world. This year, supplies to France have surged, nearly doubling compared to 2023. According to Kpler data, more than half of these shipments have arrived at the Dunkirk import terminal. French energy companies EDF and TotalEnergies, along with Germany's state-owned Sefe, have agreements to utilise the terminal.

Belgium has become the second-largest importer of Russian LNG, with the port of Zeebrugge serving as one of the few European transshipment hubs for LNG transferred from ice-class tankers in the far north to conventional cargo ships. EU governments have agreed to ban the transshipment of Russian LNG from Yamal to non-EU countries, with the measure set to take effect in March 2025.

Background:

Ten European Union member states proposed to tighten sanctions against Russia's energy sector, particularly LNG, and institutions that help Moscow circumvent existing restrictions.
On 16 December, the EU Council adopted the 15th package of sanctions against Russia, designed to counteract sanctions circumvention by targeting Russia's shadow fleet and weaken the Russian defence industry.
The EU is due to begin discussions on the 16th package of sanctions in early 2025, which will coincide with the Polish presidency of the Council of the European Union.

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