State firm Gazprom has increased LNG exports from its new Portovaya LNG project, offsetting declines in pipeline deliveries to Western Europe.
Western Europe has taken steps to reduce its energy dependence on Russia since the outbreak of war in Ukraine. In particular, European governments have sought to diversify sources of energy supply, increasingly replacing gas supplies from Russian pipelines with Russian liquefied natural gas (LNG).
According to data from Reuters, more than 10% of Russian gas previously transported via pipelines to the European Union has been replaced with LNG delivered to EU ports. This increase is partly attributable to discounts offered by some Russian manufacturers, such as Novatek, which have sold cargo at a reduced rate into the EU. At the same time, state-owned Gazprom increased LNG exports from its new Portovaya LNG project, offsetting declines in pipeline deliveries to Western Europe.
Spain, home to the EU’s largest fleet of import terminals, has emerged as the main re-exporter of Russian gas supplies by sea, even though it previously did not import Russian gas. This change has been highlighted by EU statistics and Reuters calculations, which show an increase in the share of Russian gas in EU supply up to 15% thanks to the growing use of Russian LNG.
However, this transition to LNG comes at a significant environmental cost, as it requires energy to gasify, ship, and re-liquefy the fuel, contradicting the EU’s goals of reducing greenhouse gas emissions.
Even if LNG arrives at European ports without the Russian label, it can be traced back to Russia through data analysis of transactions and ship routes. In Spain, for example, several independent traders have sold volumes of Russian LNG at discounts to the European reference price.
Some large Spanish energy companies have denied buying Russian gas directly, but there are indications that Russian gas could still be present in volumes purchased from third parties. Furthermore, the EU has implemented measures to further limit energy dependence on Russia, such as banning Russian companies from booking infrastructure capacity for the supply of LNG in EU countries.
In 2023, independent traders sold Russian volumes on the Spanish market at a discount, achieving significant savings. Although large Spanish energy companies such as Repsol, Cepsa, Endesa, and Iberdrola say they do not buy Russian gas directly, they may still receive it indirectly through third parties.
However, the switch to Russian LNG has raised concerns in some countries. For example, Greece has seen an increase in the share of Russian gas in its supply, leading to legal action against Gazprom by the Greek state-controlled DEPA.
Original article published on Money.it Italy 2024-04-17 07:01:00. Original title: Ecco come la Russia sta invadendo l’Europa con il suo GNL
