The European Union’s ban on the transshipment of Russian liquefied natural gas (LNG), first announced in June 2024, officially went into effect today. The ban, which was delayed until March 26, 2025, prohibits EU countries from offering technical support, brokerage services, and financing for Russian LNG transshipment operations. This measure is part of ongoing sanctions aimed at disrupting Russia’s ability to fund its war in Ukraine. Although Russian LNG represented only 5% of the EU’s energy consumption in 2023, it still generated approximately $8 billion in revenue for the Kremlin.
Gas expert Laura Page from Kpler analytics told Politico that without the ability to transship through Europe, Russia may need to rely on ice-class tankers for longer journeys. She added that this could slow down shipments from the Yamal Peninsula due to delays in returning vessels.
Meanwhile, European imports of Russian gas have dropped significantly, falling from about 450 million cubic meters per day (mcm/d) at the end of 2021 to around 150 mcm/d now. In place of Russian gas, Norway and the U.S. have become Europe’s top suppliers. In 2023, Norway supplied 87.8 billion cubic meters (bcm), or 30.3% of total imports, while the U.S. contributed 56.2 bcm, accounting for 19.4%.
Despite these shifts, there are ongoing discussions about the possible return of Russian gas to European markets. During the recent International Energy Week in London, the Financial Times reported that the former head of Nord Stream 2’s parent company proposed restarting the pipeline with U.S. businesses acting as intermediaries. This plan would aim to make gas flows appear more reliable. However, Standard Chartered has noted that such an approach would require multiple approvals and may not necessarily enhance the reliability or security of Russian gas supplies.
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