FRANCE PURCHASES RECORD VOLUMES OF RUSSIAN LNG

In 2024, France imported record volumes of Russian Liquefied Natural Gas (LNG), Bloomberg reported with reference to supply tracking data.

Since the beginning of the year, Russian fuel imports have risen to a record level since 2018. Deliveries to the Dunkirk terminal near the Belgian border have increased particularly sharply. As analysts note, Europe remains an attractive destination for cargoes from Russia's largest LNG plant in Yamal in the Arctic. Fuel purchase contracts have been concluded with TotalEnergies SE, Naturgy Energy Group SA and Germany's Securing Energy for Europe GmbH (SEFE).

Despite claims that Europe is reducing its dependence on Russian energy resources, the bloc must compensate for the disruption of gas supplies through pipelines with LNG. It is unclear how much Russian gas delivered to France is actually consumed there. After the liquefied fuel is regasified and fed into a single network, it is blended and transported freely to other European countries.

France is among several EU countries calling for stricter monitoring of Russian LNG imports to increase transparency and phase out supplies of the fuel from Moscow.

SEFE is the former commercial arm of Russia's Gazprom PJSC, which was nationalized by Germany at the height of the energy crisis. All cargo received by the company from Yamal LNG is sold to French and Belgian hubs.

“If the LNG is not purchased, Russia can resell it on the world market and thus receive a second income for the same volumes. Therefore, the contract is implemented in such a way that the advantage of the Russian side is as small as possible,” explained a representative of the German Ministry of Economics.

Earlier, German authorities “instructed” the operator of the Deutsche Energy Terminal LNG terminal not to accept vessels with Russian LNG. The agency made a similar request after the operator announced the shipment of Russian LNG at its Brunsbüttel terminal.

Stanislav Mitrakhovich, a leading expert at the National Energy Security Foundation and the Government Financial University of the Russian Federation, said that until the end of 2024, supplies of Russian LNG abroad will continue to grow. This will happen due to concerns of European partners about the cessation of fuel transit through the territory of Ukraine. Russian LNG has not yet been banned in Europe, and therefore the opportunity to purchase it is actively used.