Page 15 - GLNG Week 12 2023

GLNG EUROPE GLNG

The Yamal LNG project.
Source: Novatek.

EU countries agree to seek legal option

to curb imports of Russian LNG

EUROPE EUROPEAN Union countries have agreed The 27-member bloc has vowed to quit Rus-
to explore a legal avenue to prevent Russian sian gas following its invasion of Ukraine. While
The EU is now honing companies from sending LNG to member pipeline imports of Russian gas to Europe have
in on Russian LNG states, Reuters reported on March 28. EU cratered, Russian LNG exports have risen, sur-
imports after previously countries’ energy ministers will explore pro- passing 22bn cubic metres in 2022. It marks a
targeting the country’s posing new gas market rules that will prevent significant rise from 2021, when European coun-
oil and petroleum Russian energy companies from booking tries imported 16 bcm.
product supplies. infrastructure capacity. European energy ministers hope that the
The proposal would see new EU gas market new proposal will rectify an unexpected situa-
rules include an option for governments to tem- tion, where LNG infrastructure intended to aid
porarily halt Russian and Belarusian gas export- European countries in replacing Russian gas
ers from bidding up-front for capacity on the with alternatives was instead being utilised to
required infrastructure used to transport LNG import additional quantities of the super-chilled
to Europe. gas from Russia.
However, any agreed legislation could take "You build the infrastructure to get rid of the
months to come into force. The proposal is part supplier who manipulated your (gas) markets
of member states’ negotiating position on new and caused great difficulties to you – and then
EU gas market rules. The proposal must now be you accept the same supplier through LNG?
negotiated with the European Parliament, a pro- There's something wrong with the logic," Lithu-
cedure which can be painstakingly slow, some- anian Vice Minister for Energy Albinas Zanana-
times taking months. vicius explained to Reuters.
Nevertheless, if approved, the proposal does While the EU has put a ban in place on Rus-
provide EU countries with the benefit of having sian oil products and seaborne crude oil, Rus-
an avenue to halt Russian LNG imports with- sian LNG has so far managed to avoid sanctions
out requiring the use of sanctions, which can despite mounting pressure on EU companies not
be more difficult for the bloc to approve given to sign deals to import Russian LNG, including
that they require unanimous support from all 27 a plea earlier this month from EU Energy Com-
member states. missioner Kadri Simson. ™

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