Europe to resell gas imported from Russia

More than 20% of Russian liquefied natural gas (LNG) arriving in Europe is resold to other countries around the world.

Financial Times quoted data from the Institute for Energy Economics and Financial Analysis (IEEFA) saying that of the 17.8 billion cubic meters of Russian LNG delivered to the European Union (EU) in the first nine months of the year, 21% was then transferred to other ships destined for non-EU countries, including China, Japan and Bangladesh.

Among EU ports this year, Zeebrugge (Belgium) and Montoir-de-Bretagne (France) received the most Russian LNG. Ana-Maria Jaller-Makarewicz, an energy analyst at IEEFA, said that transshipment (the transfer of cargo from one ship to another along the way) had decreased after Russia launched its military campaign in Ukraine in 2022. However, this activity is still going on on a large scale and is probably being neglected.

“The EU did not think about this when they discussed the ban with Russia. They did not consider transshipment,” Jaller-Makarewicz said. Transshipment contracts for Russian LNG have been banned in the UK and the Netherlands, but are still active between cargo ships in Belgium, France and Spain.

An oil tanker en route to the Black Sea. Photo: Reuters — An oil tanker en route to the Black Sea. Photo: *Reuters*

Amund Vik, a former Norwegian energy executive, said European governments were still in a dilemma over the issue. “They are very cautious on this issue as winter approaches,” he said.

Unlike coal and oil, Russian gas is not currently subject to EU sanctions. The European Commission (EC) has only asked member states to end their dependence on Russian fossil fuels by 2027 at the latest.

Previously, the EU imported about 155 billion cubic meters of Russian natural gas via pipeline, equivalent to 40% of its annual supply. Now, to replace this fuel, the EU is increasing its LNG imports from countries such as the US, Norway and Qatar. However, the EU still had to import a record amount of LNG from Russia this year.

European officials explain that they continue to import Russian gas because they signed long-term contracts before the war. If the contracts are terminated, European companies will have to pay compensation to Russia. For example, the 20-year contract of Belgian gas company Fluxys with Yamal (Russia) does not end until 2039.

Analysts say the transit operation is helping Russia increase its gas revenues, despite EU efforts to squeeze Moscow’s finances. The Belgian energy ministry said it “will deal with this issue resolutely” and is “collecting data on effective approaches”.

The French Energy Ministry said there were no plans to stop Russian LNG transshipments at French ports. "France and Europe have significantly reduced their consumption of Russian gas by diversifying their sources of supply," a ministry spokesman said.

Ha Thu (according to FT, RT)

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