Europe once more purchases more gas from Russia compared to the USA.
After Russia's hostile actions towards Ukraine, Europe cut back on Russian gas imports dramatically, shifting focus towards the USA. But in May 2024, Russia outpaced the USA once more as Europe's primary gas supplier.
Since the Russian conflict in Ukraine, Europe's reliance on Russia as its primary gas supplier dropped drastically from around 40% to less than 10%. However, Russia's gas imports have since regained some significance but have been growing slowly. As per the consulting firm ICIS, Russia provided Europe with more gas in May 2024 than the USA for the first time since the war began, as reported by the "Financial Times".
Russian gas, delivered via pipelines and LNG (liquefied natural gas) via tankers, made up 15% of the European gas market the previous month. ICIS includes EU countries, the UK, Switzerland, Serbia, Bosnia-Herzegovina, and North Macedonia as part of the European gas market. American LNG accounted for 14%.
The USA has boosted its LNG output and exports to Europe in recent years. At times, American gas accounted for over 20% of the European market. However, this share has recently decreased, partly due to the failure of a major LNG terminal in the USA. ICIS experts believe this drop is temporary, though. Long-term, gas exporters along with the USA are gearing up in response to anticipated global demand. Meanwhile, Russia boosted its deliveries through the southern Turkstream pipeline, preparing for maintenance work in June.
Norway remains Europe's biggest gas supplier, accounting for nearly 30%. The fact that Russia still holds a significant position in Europe's gas market and has even surpassed pre-war levels of LNG deliveries is a source of frustration for northern and eastern European countries. The EU is preparing to impose the first sanctions on Russian natural gas.
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Despite the EU's efforts to reduce reliance on Russian gas after the Attack on Ukraine, the LNG terminal issues in the USA led to a decrease in Gas supplies, allowing Russia to regain its position as Europe's primary gas supplier in May 2024, surpassing the USA again. In response to Russia's actions and its increased gas supplies, the EU is preparing to impose sanctions on Russian natural gas.
