Europe Still Clings to Russia Gas With Record LNG Flow This Year

(Bloomberg) — The European Union boosted imports of Russian liquefied natural gas against the backdrop of deepening tensions over pipeline supplies that flow through Ukraine. 

The bloc purchased a record amount of Russian LNG this year, according to ship-tracking data compiled by Bloomberg. Among top byers, France has already hit its highest-ever volumes and Spain is closing in on records seen last year. 

The numbers show that Europe is still hooked on energy from Russia, which remains one of the continent’s top gas providers despite severe cuts in supplies in 2022. While officials in the EU and Kyiv have called for a halt in purchases, there’s still no region-wide ban on the fuel and it remains a cheaper option for many buyers.

Countries such as the UK, Germany and the Baltic states have stopped taking Russian gas altogether. But once Russian LNG is regasified in France, Belgium or the Netherlands, and enters the grid, molecules mix and can flow freely to other nations.

Earlier this year, the bloc for the first time agreed to impose some curbs on Russian LNG, targeting the country’s shadow fleet of tankers, and fuel transshipments to third countries. France and Belgium have both called for tougher monitoring. 

Russia’s share in the continent’s total gas imports — about 15% now — may drop next year as a transit deal with Ukraine expires on Dec. 31. Chances of a new accord are slipping away after intense talks in the past few days. In LNG, it remains the second largest supplier after the US for now. 

Last month, European Commission President Ursula von der Leyen suggested it might be possible to import more LNG from America to replace similar flows from Russia. And US President-elect Donald Trump this week threatened to slap tariffs on EU exports if member states don’t buy more oil and gas from his country.

–With assistance from Anna Shiryaevskaya.

©2024 Bloomberg L.P.

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Publish date : 2024-12-20 04:39:00

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