Europe buys record volume of Russian LNG

Sanctions affecting parts of the Russian liquefied natural gas sector and forcing it to sell at discounts, as well as the prospect of ending pipeline gas transit through Ukraine, have prompted European companies to increase purchases of Russian LNG. As a result, deliveries rose to record levels. It was reported by The Guardian.

According to Rystad Energy, 17.8 million tons of Russian LNG will arrive at European ports in 2024. This volume exceeds the 2023 figure by more than 2 million tons and, according to Rystad gas analyst Jan-Erik Fenrich, is a “record “.

Similar figures were provided by the Center for Research on Energy and Clean Air (CREA): deliveries for the year increased by 14% and reached 17.5 million tons, worth 7.32 billion euros.

Purchases of Russian LNG by EU countries (24.2 billion cubic meters) amounted, according to Fenrich, to almost half of the volume of pipeline gas supplied to Europe and Turkey (49.5 billion cubic meters). Gazprom has pumped just 32 billion cubic meters directly into Europe, Reuters reports.

“The reason for the increase in purchases is quite simple,” explained CREA analyst Vaibhav Raghunandan “Russian LNG is offered at a discount compared to gas from alternative suppliers. In the absence of sanctions on this product, the companies act in their own interests and buy more gas from the cheapest supplier.”

We remind you that Germany has banned ports from receiving tankers with Russian gas.

Earlier, Foreign Minister Andrei Sibiga responded to the publication of the Financial Times that in 2024, EU countries will import a record volume of Russian LNG gas.