Europe buys record quantities of Russian LNG

In March, Europe imported more Russian liquefied natural gas than ever before - just before new restrictions on short-term LNG contracts came into force. This once again shows how great the contradiction remains between the EU's political goals and the realities of energy policy. The EU is facing a difficult balancing act. On the one hand, it wants to further reduce its dependence on Russian energy supplies. On the other hand, it needs to supply industry, households and storage facilities with sufficient gas. Energy costs in Europe have risen significantly since the loss of large parts of the former pipeline supplies. The situation was recently put under additional pressure because gas storage facilities were at a low level at the start of the refilling season and supplies from Qatar failed to materialize at the same time. Against this backdrop, European suppliers increasingly turned to Russian LNG in March. According to data from the organization Urgewald, which is based on ship tracking data from Kpler, the EU imported around 2.45 to 2.46 billion cubic meters of Russian LNG in March 2026. This was around 20 percent more than in February and around 38 to 40 percent more than in the same month last year. Record purchases before new restrictions On April 25, new EU restrictions came into force that prohibit short-term import contracts for Russian LNG. Shortly before this, European energy companies once again secured particularly large quantities. In March alone, 25 cargoes from the Yamal LNG project operated by Novatek were fully unloaded at European terminals. A similar picture had already emerged in February. At that time, all LNG deliveries from Yamal went to the EU - 21 out of 21 cargoes. In January, 23 out of 25 cargoes from Yamal were unloaded in European ports. In the entire first quarter of 2026, the EU took 69 of the 71 global Yamal deliveries. This corresponds to 97 percent of the project's production. According to estimates, Europe paid around 2.88 billion euros for LNG from Yamal in the first quarter. This corresponds to around 32 million euros per day. China, which has been established as an alternative customer for Russian LNG in recent years, only received two deliveries in January and none in February and March. Why the market was stronger than politics The most important reason for the high imports is the price and supply shock on the energy markets. The European TTF gas price rose from around EUR 35 per megawatt hour in January and February to EUR 52.87 in March. At the same time, the uncertainties surrounding supplies from the Gulf region intensified. Qatar had to cut back some of its LNG production, while the global supply chains for liquefied natural gas also came under pressure. The USA is now Europe's most important LNG supplier, but sells a large proportion of its volumes flexibly on the global market. As a result, Europe competes directly with Asian buyers, who often offer higher prices during tight market phases. Several LNG tankers originally destined for Europe have recently been diverted to Asia. Russian LNG therefore remained one of the few reliable sources for European buyers in the short term. Traders and suppliers secured additional volumes before the new rules came into force in order to limit supply and price risks. In March alone, European purchases of Russian LNG amounted to around 1.33 billion euros. Europe's role in the Yamal system Dependence is not just a question of acceptance. European companies also play an important role in the logistics of the Yamal project. Of the 14 Arc7 ice-class tankers used for transportation from the Arctic, eleven are operated by companies from the UK and Greece. In addition, there is European port infrastructure, insurance, maintenance capacity and long-term supply contracts. Urgewald summarizes this as follows: Europe is not only a buyer, but also a central component of the project's operational structure. In March, Yamal LNG achieved a production of 3.3 million tons - an increase of 13 percent compared to the previous year. The short distance from the Arctic port of Sabetta to European terminals enables fast turnarounds. Each delivery to Europe takes an average of just over eight days. This access is particularly important for the project in the winter months. France remains the largest customer France was the largest EU buyer of Russian LNG in 2025. The country accounted for 41.7 percent of EU imports. In total, 87 tankers delivered around 6.3 million tons of Russian LNG to the French ports of Dunkirk and Montoir. Belgium also played a key role. The port of Zeebrugge received 58 ships with 4.2 million tons, importing more Yamal LNG than China alone. The French energy group TotalEnergies holds a 20 percent stake in the Yamal LNG project and buys around 4 million tons annually. This makes the company one of the most important single buyers of the project. The replacement problem remains unsolved The EU wants to gradually end Russian LNG imports. The ban on short-term contracts has been in force since April 25. Long-term contracts, which make up the majority of European Yamal supplies, are to be affected from January 1, 2027. This means that Europe is facing a considerable replacement problem. From 2027, around 15 million tons of Russian Arctic LNG would have to be replaced. At the same time, alternative sources of supply are only available to a limited extent. The USA supplies large quantities, but Europe is in competition with Asia. Qatar is currently only of limited importance as a reliable additional supplier. The loss of the European market would also be difficult for Russia to compensate for. Studies indicate that the existing tanker capacity is not sufficient to redirect the same volume of Yamal to Asia. Without access to European ports, annual deliveries from Yamal could fall significantly. In the past four years, Europe has paid more than 230 billion US dollars for Russian oil and gas imports. Many contracts will continue to run for a long time, in some cases until the 2040s. Politically, the EU is pursuing an exit from Russian energy. However, the market showed once again in March that this exit is much more difficult than the resolutions suggest. The post Europe buys record quantities of Russian LNG appeared first on ostwirtschaft.de.