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Russian liquefied pure gasoline imports to the EU have reached a document excessive this yr regardless of the bloc’s try to chop off dependence on gasoline from the nation following Moscow’s full-scale conflict on Ukraine.
Europe imported a document 16.5mn tonnes of Russian LNG as of mid-December, above final yr’s imports of 15.18mn tonnes, in accordance with commodities information supplier Kpler. The quantity can also be larger than the final document of 15.21mn tonnes imported in 2022.
“What we’ve got seen this yr is stunning,” mentioned Ana Maria Jaller-Makarewicz, an analyst on the Institute for Power Economics and Monetary Evaluation. “As an alternative of steadily decreasing Russian LNG imports, we’re rising them.”
Following Russia’s full-scale invasion of Ukraine in 2022, the EU set a goal of stopping imports of any Russian fossil fuels by 2027, however shipments of the super-chilled gasoline arriving in European ports have continued to rise.
Not like gasoline imports through pipelines which have dwindled to a trickle, and Russian oil and coal, that are banned within the EU, imports of Russian LNG are nonetheless allowed and rising, in an indication of how a “panicking” Europe remains to be struggling to wean itself off cheaper provides, mentioned Jaller-Makarewicz.
Analysts have pointed to an elevated buy of Russian LNG on the spot market this yr — 33 per cent of the EU’s imports of LNG of Russian origin have been finished underneath spot contracts this yr, in contrast with 23 per cent final yr, mentioned Rystad Power, an power consultancy.
Firms reminiscent of Shell and Equinor have introduced they aren’t buying Russian LNG on the spot market. Different merchants have mentioned that because the invasion, there are sometimes clauses in contracts for spot cargoes that make sure the LNG “is just not of Russian origin”.
Nonetheless, spot trades this yr have elevated as merchants “can get cargoes delivered cheaper [from Russia]”, mentioned Christoph Halser, gasoline analyst at Rystad.
He added that LNG shipped from Russia’s Yamal terminal to Europe had a “considerably decrease” worth than the gasoline shipped from the US.
Europe beforehand imported about two-fifths of its gasoline from Russia, most of which was by means of pipelines. Now, general gasoline imports from Russia, together with pipeline gasoline, solely account for about 16 per cent of the EU’s gasoline provides.
EU officers are satisfied that the bloc doesn’t want Russian fuels, even when it means accepting larger costs to purchase gasoline elsewhere.
However Russian LNG accounted for 20 per cent of the EU’s general imports of the seaborne gas this yr, up from 15 per cent final yr, ship monitoring information reveals. Not all Russian LNG dropped at Europe is consumed within the area, with some being reloaded and shipped to different elements of the world.
Volumes into France have jumped this yr, nearly doubling from 2023. Greater than half the shipments have gone to the import terminal at Dunkirk, in accordance with information from Kpler.
French power firms EDF and TotalEnergies, in addition to German state-owned power firm Sefe have terminal use agreements there.
Belgium was the second-largest importer of Russian LNG as a result of its port of Zeebrugge is without doubt one of the few European factors of transshipment for LNG from ice-class tankers used within the excessive north to common cargo vessels. EU governments have agreed to ban these transshipments of Russian LNG from Yamal to non-EU nations, a measure which can come into drive in March 2025.
Dan Jørgensen, the EU’s new power commissioner, has promised to current a plan subsequent yr for a way the bloc can meet the 2027 goal to wean itself off all Russian fossil fuels.
European Fee president Ursula von der Leyen signalled in October that the bloc may enhance US imports as a option to placate US president-elect Donald Trump, who has threatened broad commerce tariffs.
Trump has warned that the EU should commit to purchasing “massive scale” quantities of US oil and gasoline or threat dealing with tariffs.
Extra reporting by Ray Douglas and Daria Mosolova
