Russian LNG on the rise in EU – report

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

The share of Russian liquified natural gas (LNG) in the EU market has reached 20% this year, the bloc’s energy watchdog reported in a quarterly review released on Tuesday.

In 2023, the share of Russian-sourced tanker-movable fuel was 14%, according to statistics cited by the Agency for the Cooperation of Energy Regulators (ACER). The shift came as supplies from Qatar, Nigeria, and minor suppliers declined. The US remains the biggest source of LNG, with 45% of EU imports.

The total flow as well as the EU’s share in the global LNG market have both shrunk this year. The bloc now accounts for 18% of all imports, down from 24% last year, the ACER report said.

Roughly a third of all EU gas imports come in the form of LNG, with the rest being delivered via pipelines, according to the report. Russian pipeline supplies grew from 7.9 billion cubic meters in Q3 of 2023 to 8.6 billion cubic meters this year.

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Commenting on the document, Bloomberg said it highlighted challenges in implementing the EU’s policy of reducing reliance on Russian supplies. This summer, Brussels banned investment in LNG projects in Russia and targeted the transshipment of Russian gas by third nations with a port access ban.

Qatar, a major natural gas producer, has been diverting shipments to Asian markets, in part due to the worsening security situation in the route through the Red Sea, Bloomberg said, explaining why its presence in the EU market has declined. The Yemeni-based Houthi rebels have been targeting commercial ships which they believe to be linked to Israel, in a campaign to pressure West Jerusalem to end its military action in Gaza.

The EU declared the intention wean itself off Russian supplies in its economy, particularly in the energy sector, following the outbreak of the Ukraine conflict in February 2022. Supplies of expensive US fuel have replaced much of the cheap pipeline gas that was previously delivered by Russia.

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The change contributed to a drop in the competitiveness of Western Europe, which was 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, said it no longer invests at home due to the poor 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.