Europe has significantly increased its imports of liquefied natural gas (LNG) from Russia, reaching record levels. Discounts on Russian LNG and the cessation of pipeline gas transit through Ukraine have encouraged European companies to turn to Russian LNG, resulting in historic shipment volumes.
According to calculations by Rystad Energy, European ports received a total of 17.8 million tonnes of Russian LNG in 2024, marking a 2-million-tonne increase compared to 2023. Rystad’s natural gas analyst Jan-Erik Fenrich, in a statement to The Guardian, described this volume as a “record level.”
The Centre for Research on Energy and Clean Air (CREA) reported similar findings. CREA calculated a 14 percent rise in imports, reaching 17.5 million tonnes at a total cost of approximately 7.32 billion euros.
The European Union countries imported 24.2 billion cubic metres of Russian LNG, according to Rystad analyst Fenrich. This represents nearly half the volume of gas transported via pipelines to Europe and Turkey, which totaled 49.5 billion cubic metres.
Conversely, Gazprom’s pipeline deliveries to Europe amounted to 32 billion cubic metres, as reported by Reuters.
CREA analyst Vaibhav Raghunandan highlighted the primary reason for the surge in imports, stating: “Russian LNG is offered at a discount compared to gas from alternative suppliers. Therefore, even though no sanctions have been imposed on this product, companies act in their own interests and prefer the cheaper option.”
Russia’s leading LNG supplier, the Yamal LNG project, is owned by Novatek. However, due to sanctions on the Arctic LNG-2 project, Novatek has been unable to commence exports for a year. Additionally, under a European Union decision in June 2024, the transfer of Russian LNG at European ports will be banned from March 2025. This restriction is expected to complicate Novatek’s ability to supply distant regions.
Fenrich pointed out that a portion of the Russian LNG imported into Europe is resold to other countries, suggesting that this practice may be influenced by the anticipated restrictions.
The cessation of pipeline gas transit through Ukraine as of January 2024 has further boosted LNG imports. Among Gazprom’s five pre-war routes for exporting gas to Europe, only the Turkish Stream pipeline remains operational. In 2023, the Ukrainian route accounted for 14 billion cubic metres, increasing to 15.4 billion cubic metres in 2024.
However, with the termination of this transit, Gazprom’s pipeline exports to Europe could be reduced by half, dropping to less than 17 billion cubic metres.
Europe has been a primary market for Russian gas for over half a century. At its peak in 2018-2019, Gazprom’s deliveries to Europe reached 175-180 billion cubic metres. Even in the pre-war year of 2021, exports were around 150 billion cubic metres.
Meanwhile, CREA estimates that Europe’s LNG imports have risen by 68 percent since 2021.
