Page 16 - GLNG Week 11 2023

GLNG EUROPE GLNG

Brussels calls for no new supply deals

for Russian LNG

RUSSIA THE European Commission has urged EU Russian LNG purchases as part of efforts to
countries and companies not to enter into new ratchet up pressure on Moscow’s revenue stream.
Russian LNG supplies supply contracts for Russian LNG, in order to According to Bloomberg, the plan could involve
to Europe have further reduce the bloc’s use of the latter’s LNG. requiring gas buyers to disclose the origin of the
remained robust. While Russian pipeline gas to Europe has LNG they purchase when the volume is larger
fallen dramatically over the past year and is now than a certain amount.
only at 10-15% of the pre-war level, Russian Estonia’s government last month also called
LNG imports into the EU soared 31% in 2022 to for a price cap to be imposed on Russian LNG,
19.2bn cubic metres. in line with similar limits placed on the country’s
“We can and should get rid of Russian gas oil and oil products.
completely as soon as possible, still keeping in Simson also said that the Commission would
mind our security of supply,” EU Energy Com- propose that a voluntary target to cut EU coun-
missioner Kadri Simson told EU lawmakers on tries’ gas consumption by 15% be extended to
March 8. “I encourage all member states and all next winter to avoid shortages. The bloc reduced
companies to stop buying Russian LNG, and not its gas use by 19.3% in August through January
to sign any new gas contracts with Russia once versus the five-year average for the period.
the existing contracts have expired.” While European gas prices have subsided
This would also help assure other suppliers and gas storage is at an historically high level,
that Europe is negotiating contracts with, she analysts have noted that the next few months
added. will be critical for Europe to stockpile sufficient
Earlier this year it was reported that Germa- volumes of gas for next winter. The International
ny’s government was considering steps to limit Energy Agency (IEA) has warned that if Russia

P16 www. NEWSBASE .com Week 11 17•March•2023