Russia shipped more than 15.6 million tons of Russian LNG to EU ports last year, slightly higher than in 2022.
Western European governments have sought to reduce their energy dependence on Russia since the start of the war in Ukraine, but when it comes to gas, they are increasingly replacing the country’s pipeline supplies with liquefied natural gas (LNG). It was reported by Reuters.
Analysis of the data showed that more than one-tenth of Russian gas previously transported through pipelines to the European Union has been replaced by LNG delivered to EU ports.
The growth was partly a result of discounts. In particular, a private Russian manufacturer Novatek last year sold cargo to the EU at cut-rate prices that were rejected by buyers in the rest of the world, while the state Gazprom increased exports from its new project Port LNGcompensation for the collapse of pipeline supplies to the west.
EU statistics and media calculations show that the increase in LNG prices caused the share of Russian gas in EU supplies to rise again to 15%. Portion of pipeline gas imports Gazprom after the start of the war fell from 37 to 8.7%.
Last year, Russia shipped more than 15.6 million tons of Russian LNG to EU ports, which is slightly higher than in 2022 and 37.7% more than in 2021.
As is known, Western European governments imposed sanctions on oil after the war against Ukraine began in February 2022, but they did not do the same on natural gas. The European Commission has called for a voluntary phase-out of all Russian fuel imports by 2027.
At the end of 2023, independent traders sold Russian volumes on the Spanish market at a €1/MWh discount to the European TTF benchmark price. This equates to savings of around €920,000 on a typical shipment worth €41 million at spot prices, according to Reuters calculations. This year there is a discount of 30-50 euro cents.
Russian imports have changed the energy profile of Spain and the EU. In 2023, the 5.08 million tons of gas imported from Russia will slightly exceed the total amount of gas exported by Spain to 21 countries, including some EU members.
Until February 2022, the bulk of gas supplied by Russia to Europe will come via pipeline Nord Stream in Germany. Now it has hit the western part of Europe and is moving inland.
EU countries will consider in April the possibility of legally banning Russian companies from booking their infrastructure capacity for LNG supplies.
However, major importers Spain and Belgium said they were unlikely to do so.
Let’s recall that in one night SBU drones attacked three factories in Russia – in the cities of Ryazan, Kstovo and Kirishi. On March 12, drones disabled one of Russia’s most powerful oil refineries LUKOIL-Nizhny Novgorodnefteorgsintez.
The latest attack by Ukrainian drones caused the closure of three oil refineries in the Russian Federation. Thus, Russia lost 12% of its oil refining capacity.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.