Russia's share of European LNG market rises, but overall LNG demand falls

Russia’s importance in the European Union market for liquefied natural gas (LNG) is growing, even as the region considers how to limit supplies from the country. In the first nine months of this year, Russia’s share of EU LNG imports rose to 20 percent, compared with 14 percent in the same period last year. Overall demand for LNG, however, fell. The EU Agency for the Cooperation of Energy Regulators (ACER) said this today in its report.

The increase highlights Europe’s energy balance more than two years after Russia’s invasion of Ukraine triggered a gas supply crisis. Russia is no longer the EU’s main gas supplier, as most pipeline deliveries have been halted or interrupted, but Russian LNG remains an important part of Europe’s energy security.

In the third quarter, total EU LNG imports fell by 23 percent to their lowest level since 2021. This means Russia’s growing share is part of a „smaller pie“. According to the report, US liquefied natural gas has so far maintained a steady share of around 45 percent this year, while Qatar’s share fell to 12 percent.

Qatari LNG was directed primarily to Asia, as tankers avoided transiting the Red Sea. The reason is the ongoing attacks on commercial vessels by Yemen’s Houthi rebels. The shift in trade flows also allowed more Russian LNG to reach the European market.

The EU is now trying to work out how to reduce its dependence on Russian gas while supplies continue to flow into the region. The contract for gas transit through Ukraine expires at the end of the year, and officials are exploring options for replacing these supplies. This year, the EU agreed for the first time to impose limited sanctions on Russian LNG.

The EU’s share of the global LNG import market fell to 18 percent in the third quarter, from 24 percent last year. Europe’s gas market is relatively well supplied, and buyers in the region are avoiding competition for spot supplies, which are more expensive.