Factors that hinder the EU's efforts to abandon Russian gas

Song Minh |

US suppliers hinder EU efforts to abandon Russian gas, according to Bloomberg.

The shipments of liquefied natural gas (LNG) from Russia to the European Union (EU) in July were close to those from the US, despite the bloc's efforts to reduce its dependence on Moscow's energy - Bloomberg reported, citing data tracking ships.

According to Bloomberg, the European Union imported about 1.5 million tons of LNG from the US last month, compared to about 1.3 million tons provided by Russia.

Bloomberg noted that the gap between the two countries' deliveries has narrowed to its narrowest level since the end of 2021.

However, this change is said to be due to a decrease in the amount of goods delivered from the US, instead of an increase in the amount of goods imported from Russia.

According to Bloomberg, US suppliers are choosing to send their LNG tankers to areas with higher prices.

In July, the US transported more gas by sea to Asian consumers than in any month since 2021, the news agency stressed, adding that demand in the Asian region had skyrocketed due to hot weather.

In June, the EU banned a number of Russian-origin LNG-related activities, including relocation, transition from ships to ships and transition from ships to shore for the purpose of re-exporting to third countries via the EU.

Seaborne imports of Russian gas into the EU are still allowed through LNG terminals connected to the natural gas network.

Bloomberg noted that the ban on the re-export of Russian LNG from the EU to third countries - effective next year - is expected to increase the number of liquefied natural gas in the European Union, as the ban would complicate logistics for Russian shipments, adding that denying LNG would be difficult if competition for supply increased.

Last year, the head of the European Commission, Ms. Ursula von der Leyen, said that the EU had reduced 80% of its imports of Russian gas.

However, ditte Juul Jorgensen, energy director general of the European Commission, said the bloc would have to buy gas from the US for decades to replace sharply declining purchases from Russia, after warning that dependence on US supply is expected to continue.

Citing S&P Global Commodity Insights, the Financial Times reported earlier this year that Russia's share of the Russian LNG market and remaining gas through the pipeline accounted for 13% of the EU's total supply last year, down from a record 40% in 2021.

Song Minh
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