The Hidden Corner of the Energy Market Where Russian Exports to Europe Are Booming

[former9thward]

While Russia has throttled its pipeline gas, its exports of liquefied natural gas to Europe are growing rapidly

Europe is spending hundreds of billions of euros to wean itself off Russian natural gas but there is one corner of the energy market where the continent is finding it hard to kick its habit. While supplies of Russian pipeline gas, which made up the bulk of Europe’s gas imports before the Ukraine war, are down to a trickle, European importers have been quietly splurging on frozen Russian gas delivered by giant ships.

The effort—and moves by Russia itself to throttle pipeline supplies—helped bring the total share of Russian gas down to 14% of the European Union’s overall imports, from around 45% before the war. But the bloc’s imports of Russian liquefied natural gas jumped by 41% in the year through August compared with that period in 2021, according to the European Commission. Russia is the EU’s second-largest source of LNG, after the U.S.

Importers argue that the shipments aren’t covered by EU sanctions and that buying LNG from Russia alongside other suppliers is needed to help keep European energy prices in check. Yet the trade runs counter to the EU’s efforts to deprive Russia of fossil-fuel revenues. The EU will ban most imports of Russian crude oil in December but has spared gas imports so far.

Last month, France was the biggest importer of Russian LNG, followed by Spain and Belgium, according to commodities data provider Kpler.

https://www.wsj.com/articles/the-hidden-corner-of-the-energy-market-where-russian-exports-to-europe-are-booming-11666604773