The EU cannot give up Russian natural gas, according to the European agency
The European Union should be cautious in its efforts to phase out Russian LNG, despite calls from some member states, the European Union Agency for the Cooperation of Energy Regulators, ACER, said in a report on Friday. Removing liquefied natural gas from Moscow could put the security of energy supplies at risk.
Baltic EU member states have called for a ban on LNG imports from the European bloc, but the EU watchdog believes such a move should only be gradual.
As the EU aims to end its dependence on Russian fossil fuels by 2027, “the reduction of Russian LNG imports should be considered in a phased manner, starting with spot Russian LNG imports,” the EU said. ACER in its report 'Developments of the European LNG market'.
“While such measures may aim to reduce dependence on Russian gas, it is important to note that substantial volumes have already been contracted under long-term LNG agreements prior to Russia's invasion of Ukraine,” the EU regulator said.
“Therefore, reductions in Russian LNG imports should be approached with caution , especially in light of the impending expiration of the ship-or-pay transit contract for the supply of gas pipelines from Russia to Europe via Ukraine, scheduled for end of 2024".
According to ACER estimates, the end of the shipping contract via Ukraine could cause the European Union to lose 13.6 billion cubic meters of natural gas compared to 2023 flows.
The fact that neither pipeline gas nor LNG imports from Russia are banned, two years after the latter's invasion of Ukraine, demonstrates the European Union's discomfort at losing any gas supply, as it is careful to avoid a surge in prices and a repeat of the 2022 energy crisis.
The EU is uncertain how to handle LNG imports from Russia in the short term. On the one hand, in words, there is always support for Ukraine, but on the other there is a big problem of stability in energy supply, at least until adequate supply contracts are concluded elsewhere.
The EU will soon allow individual member states to block LNG imports from Russia without resorting to sanctions, limiting access to Russian gas to their gas systems.
Spain, the EU member with one of the largest LNG import capacities, is seeking stricter European-level coordination on the management of Russian LNG imports, the Spanish Energy Minister told Bloomberg last month Teresa Ribera in an interview. At the same time, however , Belgium is a hub for the sale of liquefied Russian gas which has even been on the increase recently.
In reality, as always, each country is doing it for itself and no one has the courage to risk energy instability.
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The article The EU cannot give up Russian natural gas, word from the European agency comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-ue-non-puo-rinunciare-al-gas-naturale-russo-parola-di-agenzia-europea/ on Sat, 20 Apr 2024 08:00:47 +0000.