- Germany Indirectly Buys Russian LNG Despite De Facto Ban.
- Sefe’s Russian LNG Purchases Skyrocket Sixfold in 2024.
- EU Struggles to Curb Russian LNG Imports Amid Rising Dependence.
Germany de facto banned direct acceptance of liquefied natural gas (LNG) from Russia, yet it has been importing increasing volumes of natural gas through France and Belgium. According to a report by NGOs from Germany, Belgium, and Ukraine, terminals in those countries still accept Russian LNG, reports Oil Price.
Sefe’s Increasing LNG Purchases from Russia
Germany’s state-controlled firm Securing Energy for Europe (Sefe)—set up in 2022 after Germany saved a former Gazprom unit—has been one of the biggest buyers of Russian LNG. In 2024 alone, Sefe bought 58 LNG cargoes from Russia through the Dunkirk terminal in France, a significant increase from the previous year. According to the report quoted by the Financial Times, this is a sixfold increase in Russian LNG purchases through Dunkirk compared to 2023.
Gas Origin Tracking Challenges
One of the main challenges facing the restriction of Russian LNG is that it becomes impossible to trace the origin of natural gas once it enters the EU pipeline network. According to the report by German environmental groups Deutsche Umwelthilfe and Urgewald, Ukrainian NGO Razom We Stand, and Belgian think tank Bond Beter Leefmilieu, this is the case.
A spokesperson from Sefe told FT: “Once delivered into the European gas network, the molecules cannot be tracked.” They further emphasised: “It is therefore impossible to know where exactly the gas that gets delivered in Dunkirk ends up.”
EU’s Stand on Russian LNG Imports
The EU has not banned the imports of Russian LNG or pipeline gas, unlike oil and coal. However, the bloc has targeted to phase out all Russian gas by 2027 to cut off revenue streams to Russia and end dependency on its fossil fuels.
This lack of tracking mechanisms has complicated efforts by some EU member states who advocate for a total ban on Russian LNG imports. Moreover, Europe’s strained gas supply, after the steep fall in Russian pipeline deliveries, has further made such measures unworkable.
Concerns Over Rising Russian LNG in EU Supply
The EU has dramatically increased imports of Russian LNG in recent months. This increase has sparked several concerns among several member states pushing for stronger curbs on Russian energy supplies.
The challenge facing the EU, however, in its energy transition is how to effectively curb the imports of Russian LNG while still ensuring energy security across the bloc.
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Source: Oil Price
