Oleg Davygora22:10, 20.12.24

After the start of a full-scale war in Ukraine, the EU set a goal to stop importing any Russian fossil fuels by 2027, but liquefied gas shipments to European ports continue to grow.

The European Union received 16.5 million tons of liquefied natural gas by mid-December, despite efforts to reduce supplies from Russia .

This is higher than last year’s figure of 15.18 million tonnes, according to commodity data provider Kpler, The Financial Times reports. It also exceeds the last record of 15.21 million tonnes imported in 2022 .

“What we are observing this year is surprising. Instead of gradually reducing imports of Russian LNG, we are increasing it,” said Ana Maria Yaller-Makarevich, an analyst at the Institute of Energy Economics and Financial Analysis.

After the start of a full-scale war in Ukraine, the EU set a goal to stop importing any Russian fossil fuels by 2027, but liquefied gas shipments to European ports continue to grow.

Unlike pipeline gas imports, which have been reduced to a minimum, and Russian oil and coal, which are banned in the EU, imports of Russian LNG are still allowed and growing, suggesting that a “panicking” Europe is still trying to wean itself off cheaper supplies, the expert says.

Analysts note an increase in purchases of Russian LNG on the spot market this year – 33% of LNG imports of Russian origin to the EU were made under spot contracts this year, compared to 23% last year, according to Rystad Energy, an energy consulting company.

Companies such as Shell and Equinor have said they will not buy Russian LNG on the spot market. Other traders say that since the military confrontation began, spot cargo contracts often include clauses guaranteeing that the LNG is “not of Russian origin.”

However, spot deals have increased this year as traders “can get cargoes shipped cheaper [from Russia],” said Christoph Halser, a gas analyst at Rystad. He added that LNG shipped from Russia’s Yamal terminal to Europe is priced “significantly lower” than gas shipped from the United States.

Russian LNG accounted for 20% of total imports of this marine fuel into the EU this year, compared with 15% last year, according to vessel tracking data.

Not all of the Russian LNG imported into Europe is consumed in the region, some is transshipped and sent to other regions of the world. The volume of supplies to France has increased sharply this year, almost doubling compared to 2023. According to Kpler, more than half of the supplies fell on the import terminal in Dunkirk.

French energy companies EDF and Total Energies, as well as German state-owned energy company Sefe, have agreements to use the terminal.

Belgium was the second largest importer of Russian LNG, as its port of Zeebrugge is one of the few European points for transshipment of LNG from ice-class tankers used in the conditions of the High 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 coming into effect in March 2025.

Selling Russian gas to Europe

Currently, total gas imports from Russia, including pipeline gas, account for only about 16% of total gas supplies to the EU.

EU officials are convinced that the bloc does not need Russian fuel , even if it means agreeing to higher prices to buy gas from other countries.

The new EU Energy Commissioner, Dan Jorgensen, has promised to present a plan next year on how the bloc can meet its 2027 target to phase out Russian fossil fuels.

In October, European Commission President Ursula von der Leyen said the bloc could increase imports from the United States to appease US President-elect Donald Trump, who has threatened to impose sweeping trade tariffs.

Trump warned that the EU must commit to buying “large volumes” of American oil and gas or risk facing tariffs.

(C)UNIAN 2024