The Financial Times reported that according to data from commodity analytics firm Kpler, the European Union (EU) has imported 16.5 million tons of liquefied natural gas (LNG) from Russia as of mid-December 2024, surpassing last year's 15.18 million tons and breaking the record of 15.21 million tons in 2022.
This is surprising, said Ana Maria Jaller- Makarewicz, an analyst at the Institute for Energy Economics and Financial Analysis (IEEFA). Instead of gradually decreasing, we are increasing LNG imports from Russia.
This goes against the EU's goal of completely ending imports of fossil fuels from Russia by 2027.
Although the EU has banned imports of Russian oil and coal and significantly reduced pipeline gas, Russian LNG is still allowed. Currently, 20% of the EU's seaborne LNG imports come from Russia, up from 15% in 2023.
Part of the reason is that LNG prices from Russia are significantly lower than those from the US. According to Christoph Halser, gas analyst at Rystad Energy, LNG from Russia's Yamal terminal is priced much lower than similar shipments from the US.
In addition, spot LNG transactions have also increased, accounting for 33% of Russian LNG imports into the EU this year, compared to 23% last year.
France and Belgium lead in importing Russian LNG. Imports of Russian LNG to France have doubled since 2023, with more than half of the shipments moving to Dunkirk. Companies such as EDF and Totalenergies continue to use the infrastructure here.
Meanwhile, the Belgian port of Zeebrugge plays a key role in transporting LNG from icebreakers to conventional vessels to continue its journey.
The EU has approved a ban on the transfer of Russian LNG from Yamal to non-EU countries, which is expected to take effect from March 2025.
Dan Jørgensen, the new EU energy commissioner, pledged to present a plan next year to achieve the goal of cutting Russian fuel by 2027. However, with cheaper Russian LNG prices and more stable supplies, the EU still faces a difficult problem: ensuring energy security without depending on Russia.
In addition, pressure from the US has also increased as President-elect Donald Trump has threatened to impose trade tariffs if the EU does not significantly increase oil and gas imports from the US.
The record increase in LNG imports from Russia shows the tension between the EU's real needs and political commitments. Meanwhile, Russian LNG remains a challenging problem on the European scale.
