EU increases Russian LNG imports from Novatek as Qatar shipments halt due to the Hormuz blockade, contradicting its energy independence goals.
The European Union, while aiming to reduce its dependence on Russian liquefied natural gas (LNG) in its official policies, has seen a contrary trend emerge in the short term. The blockade in the Strait of Hormuz has halted LNG shipments from Qatar, leading Europe to increase its purchases from the Russian gas producer Novatek.
According to a new analysis published by the environmental organization Urgewald, European ports imported approximately 18% more natural gas from Novatek's Yamal LNG facility in the first five months of the year compared to the same period last year.
The Yamal LNG facility, located on the coast of the Ob Gulf, is largely dependent on the European market for most of the year. Although there are opportunities for eastward shipments via the Northern Sea Route during periods when the ice thins, cargoes need to be transported westward during the winter months. Due to geographical proximity, Europe is the most natural market for these shipments. According to current regulations, EU countries will be able to legally continue importing Russian LNG until 2027.
This dependence became more pronounced in May. Out of 25 LNG cargoes dispatched from Yamal LNG, 23 reached European Union ports. Thus, approximately 92% of the facility's monthly shipments were directed to Europe.
Although the EU has banned the signing of new Russian LNG contracts, long-term contracts signed before March 18 remain valid until January 2027. Sebastian Rotters from Urgewald stated, 'The short-term contract ban has not had a visible effect so far. The time gap in the regulations weakens the impact of the sanctions.'
Cargoes from the Arctic LNG 2 project, which is a neighbor to Yamal LNG, are primarily being sent to China due to sanctions against the facility. It has been reported that Russia has created a limited 'shadow fleet' to deliver LNG to East Asian markets for Arctic LNG 2, which is on the U.S. sanctions list.
It has been reported that Novatek, the developer of both projects, is in discussions to purchase six specialized ice-breaking LNG carriers and four ice-class LNG vessels from Mitsui OSK and Hanwha Ocean. If this agreement materializes, the company is expected to have greater flexibility in directing gas shipments to eastern routes.
Source: SeaNews Türkiye
