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Imports of Russian liquefied natural gas to the EU have reached a record high this year even as the bloc tries to end its dependence on the country's natural gas following Moscow's all-out war in Ukraine.
Europe imported a record 16.5mn tonnes of Russian LNG as of mid-December, up from last year's 15.18mn tonnes, according to commodity data provider Kpler. The amount is also higher than the last record of 15.21mn tonnes imported in 2022.
“What we've seen this year is amazing,” said Ana Maria Jaller-Makarewicz, an analyst at the Center for Energy Economics and Financial Analysis. “Instead of gradually reducing Russian LNG, we are increasing it.”
Following Russia's all-out invasion of Ukraine in 2022, the EU set a target to freeze imports of any substance. Russia's fossil fuels in 2027but shipments of very cold gas arriving at European ports continued to rise.
Unlike gas imports through pipelines which have decreased, and Russian oil and coal, which are closed to the EU, Russian LNG imports are still allowed and growing, a sign of how the “anxiety” of Europe is still struggling to wean. “It itself has produced cheaper materials,” Jaller-Makarewicz said.
Analysts have pointed to increased purchases of Russian LNG on the local market this year – 33 percent of the EU's LNG imports of Russian origin were made under local contracts this year, compared to 23 percent last year, said Rystad Energy, a consultancy. of power.
Companies such as Shell and Equinor have announced that they are not buying Russian LNG on the local market. Some traders have said that since the attack, there are many clauses in cargo contracts that guarantee that the LNG is “not of Russian origin”.
However, spot trading this year has increased as traders “can get cargoes delivered at a lower price (from Russia)”, said Christoph Halser, gas analyst at Rystad.
He added that LNG shipped from Russia's Yamal terminal to Europe was “much cheaper” than gas shipped from the US.
Europe used to import about two-fifths of its gas from Russia, much of it through pipelines. Currently, total gas imports from Russia, including pipeline gas, are only about 16 percent of the EU's gas supply.
EU officials are convinced that the bloc does not need Russian fuel, even if it means accepting higher prices to buy gas elsewhere.
But Russian LNG accounts for 20 percent of the EU's marine fuel imports this year, up from 15 percent last year, ship tracking data shows. Not all Russian LNG delivered to Europe is consumed in the region, some is reloaded and sent to other parts of the world.
Volumes in France have jumped this year, almost doubling from 2023. More than half of the shipments go to the import terminal in Dunkirk, according to data from Kpler.
French energy companies EDF and TotalEnergies, as well as German state energy company Sefe have agreements to use the terminal there.
Belgium was the second largest exporter of Russian LNG because its port of Zeebrugge is one of the main points in Europe for the transportation of LNG from ice-class tanks used in the high north to conventional cargo ships. EU governments have agreed to ban Russian LNG shipments from Yamal to non-EU countries, a measure that will come into effect in March 2025.
Dan Jørgensen, the EU's new energy commissioner, has promised to present a plan next year on how the bloc can reach its 2027 target to wean itself off all Russian fossil fuels.
European Commission President Ursula von der Leyen signaled in October that the bloc could increase US exports as a way to counter US president-elect Donald Trump, who has threatened broad trade tariffs.
Trump he warned that the EU must commit to buying “large scale” US oil and gas or risk facing tariffs.
Additional reporting by Ray Douglas and Daria Mosolova