Europe has increased its purchases of liquefied natural gas from Russia

The European Union’s efforts to reduce its dependence on Russian hydrocarbons and thereby limit its participation in Moscow’s war chest have had mixed results. This is especially true for gas.

With 40% of its consumption imported from Russia before the invasion of Ukraine, the EU, heavily dependent on imposing sanctions, was content to reduce its imports. It was “aided” by Moscow, which significantly cut its gas supplies, particularly on oil, as a retaliatory measure against Western sanctions. In particular the Nord Stream underwater pipeline, which allowed it to supply Europe, particularly Germany, was sabotaged in September 2022. Overall deliveries of Russian gas to Europe fell to around 15% of EU purchases at the end of 2023.

After a significant reduction in Russian gas deliveries, Europe had to adapt. It has shifted more towards liquefied natural gas (LNG) transported by ship. Its LNG purchases exceed 170 billion euros in 2022 and 2023, suggests a study by American think tank IEEFA (Institute for Energy Economics and Financial Analysis). Almost half of imports (75 billion euros) came from the United States, while Russia sent about 15% (24 billion euros), thus beating Qatar as the world’s leading exporter of LNG.

Unlike gas shipped by pipeline, Russian LNG has seen its share of European imports increase. is”“Today, purchases of Russian LNG represent almost half of the EU’s purchases of Russian gas, almost zero before the invasion of Ukraine,” French energy expert Thierry Brothers underlines. Greece and Turkey started importing them in 2022. Shipments doubled to Spain and more than tripled to Belgium. Spain, France and Belgium together received 80% of European imports of Russian LNG last year, the study said.

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20% reduction in demand

At the same time, Europe’s gas consumption fell to its lowest level in ten years in 2023. In the two years following Russia’s invasion of Ukraine, gas demand across the continent (EU, UK, Norway and Turkey) fell by 20%. It fell to 452 billion cubic meters, below 2014 consumption.

Europe has overcome the energy crisis and organized itself to continue reducing its gas consumption, Thanks in part to energy efficiency measures and renewable energy is” The continent’s LNG consumption should therefore peak in 2025, predicts IEEFA.

While gas supply should continue to increase. “LNG projects commissioned from 2025 are expected to add the equivalent of 45% of total global LNG supply and 6% of total gas supply.” , The firm counted on global sovereign counsel. Good news for gas prices in Europe. After peaking at around 340 euros per MWh in August 2022, they fell back to 24 euros, close to pre-war prices.