Belgium calls for coordinated European approach to end Russian LNG imports

Belgium has again called for a coordinated European approach to end the import of Russian LNG into the EU, with energy minister Tinne Van der Straeten pressing for the adoption of a legal basis to accelerate the phase out of Russian fossil fuels.

The EU in June formally adopted its 14th sanctions package against Russia, targeting the country's LNG sector for the first time.

Central to the package was a new ban on the transshipment of Russian LNG at EU ports for delivery to non-EU markets, which is set to take effect from the end of March 2025.

But the EU stopped short of imposing a blanket ban on Russian LNG imports despite a previous pledge to end all Russian fossil fuel imports by 2027.

"For several months, the minister has been advocating for a European halt to imports of Russian LNG and fossil fuels into Belgium and the EU," a spokesperson for Van der Straeten said Sept. 26.

The spokesperson said Van der Straeten had stressed the need for a "coordinated European approach with a solid legal basis" in order to accelerate the gradual reduction of Russian LNG imports.

"As she has repeatedly pointed out, Europeans are fueling [Russian President Vladimir] Putin's war chest through their dependence on Russian fossil fuels," the spokesperson said.

To impose sanctions at the EU-level, heads of state and government are required to agree.

As part of the EU's new gas decarbonization package, member states are, however, given the right to restrict access to Russian gas and LNG at the national level.

Flow monitoring

The European Commission has been tasked with monitoring the share of Russian LNG imports in the total energy imports of the EU following the imposition of the June sanctions.

It is to report to the EU Council in the event of any important developments linked to the sanctions by June 2025.

A ban on transshipments is expected to see more Russian LNG remain in Europe at the expense of Asia.

European ports such as Zeebrugge are used to reload Russian LNG carried by specialist ice-breaker vessels from the Yamal LNG project onto conventional LNG vessels for re-export to markets such as Asia.

Sanctions against transshipment would mean any Asia-bound cargoes sent westward might have to be carried all the way by the ice-breaking vessels, meaning a much longer voyage.

Shipments from Yamal LNG eastward to Asia via the Northern Sea Route are possible in the summer months, with the first vessel to use the route in 2024 -- the Eduard Toll -- setting sail in June, S&P Global Commodity Insights data showed.

The EC said the LNG-related measures were designed to continue ensuring the security of gas supply to the EU.

"The transshipment ban only affects Russia's logistic costs to export LNG, but it does not prohibit (or target in any way) imports into the EU or anywhere else," it said.

The EC said LNG supplies to the EU would be unaffected.

"At the same time, prices are not expected to be affected as LNG is a global market where prices are determined by the interplay between demand and supply globally, and global supply would not be affected by this transshipment ban," it said.

A derogation can also be requested for transshipment of Russian LNG when the destination of the cargo is another EU member state.

Russian volumes

According to Commodity Insights data, Russian LNG exports to the EU totaled 14.2 million metric tons in 2023, up slightly from 14 MMt in 2022.

So far in 2024, Russian LNG exports to the EU have reached 11.8 MMt, with the biggest volumes delivered to France (4.4 MMt), Spain (3.9 MMt) and Belgium (2.1 MMt), the data showed.

It comes as spot LNG prices for delivery into Europe continue to trade well above $10/MMBtu.

Platts, part of Commodity Insights, assessed the Northwest European LNG marker on Sept. 25 at $12.18/MMBtu.

The sanctions imposed in June also provided for a ban on the import of Russian LNG into specific terminals that are not connected to the EU gas pipeline network.

As a result, Finland's Gasum ceased all Russian LNG imports in line with the new EU sanctions in July.

Finland historically imported small volumes of LNG from Russia's Vysotsk terminal into its small-scale import terminals at Pori and Tornio, which are not connected to the wider Finnish grid.

According to Commodity Insights data, Russia delivered some 140,000 metric tons of LNG to Finland in 2023 and sent around 110,000 metric tons in 2024 before the ban took effect.

Sweden also has small-scale LNG terminals at Lysekil and Nynashamn, which have traditionally imported small volumes of Russian LNG from the Vysotsk terminal, with deliveries totaling 80,000 metric tons in 2023 and just 60,000 metric tons in 2024.

No imports have arrived into Sweden from Vysotsk since April this year, Commodity Insights data showed.