Russia

EU buying record Russian LNG volumes with total ban looming – FT

RT English · 2026-07-14

AI SUMMARY

• What happened: The EU imported a record 9.89 million tons of liquefied natural gas (LNG) from Russia's Yamal project in the first half of 2026, an 18% increase from the previous year, ahead of a planned ban on Russian LNG supplies starting January 1, 2027. • Why it matters: This surge in imports occurs as the EU aims to eliminate Russian LNG, which currently constitutes about 14% of its imports, amidst rising energy costs and supply disruptions, raising concerns about energy security and the bloc's transition to greener sources. • What to watch next: The EU's energy strategy will be closely monitored as it navigates the upcoming ban on Russian LNG, potential shifts in US LNG exports, and the implications of new methane emissions regulations set for 2027.

**EU Records Surge in Russian LNG Imports Ahead of Planned Ban**

The European Union (EU) has reported a significant increase in imports of liquefied natural gas (LNG) from Russia’s Yamal LNG project during the first half of 2026. This surge comes as the bloc prepares for a total ban on Russian LNG supplies under long-term contracts, set to take effect on January 1, 2027. The Financial Times highlighted these developments, citing data from energy analytics firm Kpler.

In the first six months of 2026, the EU imported approximately 9.89 million tons of LNG from the Yamal project, operated by Russian energy company Novatek. This figure represents an 18% increase compared to the same period in the previous year and accounts for nearly all of the facility's output. The total value of these shipments is estimated to be around €6 billion (approximately $7 billion), according to the German environmental organization Urgewald.

France emerged as the largest importer of Yamal LNG, bringing in 3.6 million tons. Belgium and Spain followed, importing 2.9 million tons and 2.7 million tons, respectively. In contrast, shipments to Asian markets from Yamal LNG saw a dramatic decrease, dropping 74% year-on-year to just over 510,000 tons, as European demand surged.

The EU's energy landscape has been significantly altered in recent years, particularly following the escalation of the Ukraine conflict, which prompted a reduction in Russian energy imports. The bloc has been striving to transition to greener energy sources, but this has been complicated by rising energy costs and supply disruptions, particularly from Qatar, which has historically provided about 20% of global LNG exports.

Additionally, a heat wave across Europe has exacerbated the situation, with France withdrawing over 200 million cubic meters of gas from its underground storage in early July to meet increased air conditioning demands. This has resulted in the lowest refill rates for gas storage facilities at this time of year, a crucial period when these sites are typically filled to ensure adequate heating supplies for winter.

As the EU pivots away from Russian gas, it has increasingly turned to American LNG, which is generally more expensive. This shift has raised concerns about the bloc's vulnerability to supply shocks. Ivan Jimenez, head of the Port of Bilbao in Spain, one of Europe’s largest LNG import hubs, has called for a reconsideration of the planned ban on Russian LNG. He emphasized that while a gradual phase-out of Russian gas is necessary, it cannot be executed abruptly.

The EU's transition away from Russian energy has positioned the United States as its largest external gas supplier, a development that Brussels has framed as a move toward enhanced energy security. However, this shift has not come without challenges. US Energy Secretary Chris Wright recently warned that American LNG exports could be redirected elsewhere if the EU does not revise its proposed methane emissions monitoring regulations for imported gas, which are set to be implemented in 2027.

As the EU grapples with the complexities of its energy transition, the upcoming ban on Russian LNG and the reliance on US supplies will continue to shape the bloc's energy strategy in the coming years. The situation underscores the delicate balance between energy security, environmental goals, and market dynamics in a rapidly changing geopolitical landscape.

Source: RT English
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