EU countries are on track to import record volumes of liquefied natural gas (LNG) from Russia this year, despite the bloc’s pledge to stop using Russian fuel by 2027. According to a report by Global Witness, EU members continued to import a significant amount of LNG from Russia in the first seven months of this year.
While the EU has banned imports of Russian seaborne oil since the beginning of the conflict in Ukraine and reduced shipments of pipeline gas from Moscow, LNG has remained unsanctioned. This has allowed EU countries to continue purchasing LNG from Russia, albeit without official approval from the bloc.
Data revealed that Belgium and Spain were the second- and third-largest buyers of Russian LNG, purchasing 7.5 million cubic meters (mcm) and 7.1 mcm respectively. France ranked fifth on the list with 4.5 mcm. China was the leading buyer with 8.7 mcm, followed by Japan with 7 mcm.
“It’s shocking that countries in the EU have worked so hard to wean themselves off piped Russian fossil gas only to replace it with the shipped equivalent,” said Jonathan Noronha-Gant, senior campaigner at Global Witness.
In the first seven months of this year, EU members bought a total of 21.6 mcm of Russian LNG. While this is slightly higher than the 21.3 mcm purchased during the same period in 2022, it represents a significant 40% surge compared to the first seven months of 2021.
The EU’s share of Russian LNG exports between January and July accounted for 52%, surpassing the 49% market share in 2022 and the 39% share in 2021.
According to the report, the cost of LNG imported by EU countries in the first seven months of this year at spot market prices amounted to €5.29 billion ($5.77 billion).
Analysts have highlighted the significance of the increase in LNG purchases, as the EU did not rely heavily on Russian LNG prior to the conflict in Ukraine. The bloc primarily relied on pipeline supplies rather than imported LNG.
Most Russian LNG shipments come from the Yamal plant, which is a joint venture between Novatek, Russia’s largest LNG producer, France’s TotalEnergies, China National Petroleum Corporation (CNPC), and a Chinese state fund.
Recent data from Eurostat also supports the findings of the Global Witness report. It revealed that Russia was the EU’s second-largest supplier of LNG in the first quarter of 2023, ranking behind the United States but ahead of Qatar, Algeria, Norway, and Nigeria.
The continued reliance on Russian LNG by EU countries raises questions about their commitment to reducing fossil fuel consumption and transitioning to more sustainable energy sources. However, it should be noted that LNG imports play a vital role in meeting the energy demands of these countries, and finding alternative sources may not be a straightforward task.
In conclusion, EU countries are increasing their imports of Russian LNG, despite the bloc’s plans to phase out the use of Russian fuel. These purchases highlight the ongoing reliance on fossil fuels, raising concerns about the region’s commitment to reducing greenhouse gas emissions and transitioning to cleaner energy sources.
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