Discussions in Brussels and across European capitals continue about how to specifically phase out Russian supplies of liquefied natural gas (LNG). Meanwhile deliveries reached a new high during the first four months of 2024, a new report by Norway’s Center for High North Logistics details.
Between January 1st and April 30th EU member states – primarily France, Belgium, and Spain – took delivery of 89 shipments of LNG from Novatek’s Yamal LNG project in the Russian Arctic. This compares to 82 shipments during the same period in 2023.
In addition, the Netherlands received nine shiploads of gas condensate from the same project. Condensates are hydrocarbon liquids produced from natural gas fields. Occupying a niche between traditional crude oil and natural gas, their import into the EU remains unsanctioned. Condensates account for around 10 percent of Yamal LNG’s overall production.
Each delivery of LNG is valued in the realm of USD 40 million, based on figures in a recent Yamal LNG load sheet seen by HNN. The value of shipments during the first four months of 2024 could total approximately USD 4 billion. Some deliveries are subsequently re-exported to third countries, including China.
The specific degree to which LNG revenues contribute to Russia’s federal budget and indirectly finance its war effort, remains unclear due to a number of tax exemptions and waivers for the sector.
Deliveries continue
The EU has thus far been unable to make definitive progress toward curbing the influx of LNG from Russia. The European Commission is expected to outline its policy approach this week ahead of the European Council meeting later this month.
Individual member states, including Germany and Sweden, have expressed support for a ban of LNG imports. A binding EU-wide agreement now appears contingent on the recommendations of a proposed high-level group of member states to study the impact of a ban on prices and energy security.
Construction continues in Russia
Apart from LNG shipments, Russia’s western Arctic saw a busy winter season with deliveries of crude oil and nickel in line with volumes during preceding winters.
Year-round construction at Novatek’s Arctic LNG 2 facility and Rosneft’s Vostok Oil projects prompted more than 100 deliveries of materials and supplies.