EU Sees Rise in Russian LNG Imports

The country’s share in the bloc’s import of sea-shipped fuel has reached 20%, Brussels’ energy watchdog has said

Russian liquefied natural gas (LNG) imports have made up 20% of the EU market this year, according to a quarterly review released by the bloc’s energy watchdog on Tuesday.

In 2023, Russian LNG accounted for 14% of EU imports. The increase in Russian LNG imports comes as supplies from Qatar, Nigeria, and other smaller suppliers have declined. The US remains the largest source of LNG for the EU, with 45% of imports.

Overall LNG imports have decreased this year, as has the EU’s share of the global LNG market. The bloc now accounts for 18% of all LNG imports, down from 24% last year, the ACER report stated.

Around a third of all EU gas imports arrive as LNG, while the remainder is delivered via pipelines, according to the report. Russian pipeline gas supplies grew from 7.9 billion cubic meters in the third quarter of 2023 to 8.6 billion cubic meters this year.

Bloomberg commented on the report, highlighting challenges in the EU’s efforts to reduce dependence on Russian energy supplies. This summer, Brussels banned investment in LNG projects in Russia and imposed sanctions on the transshipment of Russian gas by third countries through a port access ban.

Qatar, a major natural gas producer, has been diverting shipments to Asian markets, partially due to the worsening security situation along the Red Sea route, according to Bloomberg. This explains the decline in Qatari LNG imports to the EU. The Yemeni-based Houthi rebels have been targeting commercial ships believed to be linked to Israel in an attempt to pressure Israel to end its military operations in Gaza.

Following the outbreak of the Ukraine conflict in February 2022, the EU announced its intention to reduce its reliance on Russian energy supplies, particularly in the energy sector. Expensive US LNG has replaced much of the cheaper pipeline gas previously supplied by Russia.

This shift has contributed to a decline in the competitiveness of Western Europe, as highlighted last week by an executive from German industrial giant Siemens. Speaking at a public hearing of the Bundestag’s Financial Committee, Christian Kaeser, the company’s head of global taxation, stated that Siemens is no longer investing in Germany due to the unfavorable business climate.

”There is no growth in Germany, there is growth in other countries, and the tax situation is not particularly good either,” he stated.