global-hydrogen-hub global-hydrogen-hub global-hydrogen-hub
European Gas Hub Logo
No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Cart / €0.00

No products in the cart.

  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
European-Gas-Hub-Logo
No Result
View All Result
Home Gas Prices

The future of Russian gas in Europe

Editor by Editor
1 year ago
Reading Time: 2 mins read
Share on FacebookShare on TwitterShare on Linkedin

The European Union has committed to phasing out all imports of fossil fuels from Russia by 2027. While sanctions have not been imposed on natural gas as they have been on oil and coal, the EU’s dependence on Russia has already been significantly reduced.

RELATED POSTS

Change-in-LNG-sendout

European gas storage levels remain on track to reach 80-85% capacity

1 week ago
global-LNG-supply-growth

Global LNG supply growth is set to accelerate in 2026

2 weeks ago
TTF-JKM-correlation

TTF-JKM correlation hit record levels in the first half of 2025

3 weeks ago

In 2023, deliveries of Russian pipeline gas to the EU had decreased by 80% since 2021, although partially offset by a temporary increase in LNG imports from Yamal.

Consequently, the share of European imports from Russian gas dropped from over 40% in the years preceding the invasion to 14% in 2023.

Pipeline exports to the European Union collapsed, dropping from a peak of 180 billion cubic meters in 2019 to 63 billion cubic meters (bcm) in 2022 and to around 27 bcm in 2023.

Currently, Russian gas is routed to European markets through two main channels: Ukraine and a branch of the offshore TurkStream pipeline.

It seems unlikely that a Ukrainian transit agreement allowing Russian gas to flow through Ukraine will be extended beyond the end of 2024, although some occasional supplies based on short-term bookings cannot be ruled out.

This leaves the 13 bcm per year segment of the TurkStream pipeline as the primary route for Russian gas to reach European countries.

The disconnection of Europe from these pipelines puts Gazprom in a precarious position from a technical, political, and financial standpoint, as there are few markets to which it can redirect its natural gas.

China has positioned itself as the primary alternative for Gazprom. The Russian company began sending natural gas to China when the Power of Siberia pipeline came into operation in 2019.

The Power of Siberia currently has a capacity of 22 bcm of gas and is expected to reach a capacity close to 38 bcm by 2030.

The Power of Siberia 2, with a capacity of 50 bcm, was also announced in 2019, but the project has experienced significant delays due to US sanctions and a lack of commitment from China.

For Gazprom, the Chinese market would be significantly less profitable than the European market.

According to Energy Intelligence, the marginal cost of fields intended for the Chinese market is 40% higher than those connected to the European market.

Thus, Russia is also seeking to concurrently develop its LNG industry; the LNG exports from four existing LNG plants represent approximately 41 bcm/y of LNG export capacity.

However, the country faces several challenges: restricted access to Western liquefaction technology, US sanctions against Russian entities, logistical issues related to maritime transport, and the need to find buyers for the additional production.

Given the increasing liquidity and flexibility of the global LNG market, gas importers in the EU should have no trouble finding alternative suppliers to Russia and will now be able to benefit from the new common gas purchasing platform to negotiate these additional volumes on an aggregated basis.

Source: Vincent BARRET


RELATED POSTS

Change-in-LNG-sendout

European gas storage levels remain on track to reach 80-85% capacity

1 week ago
global-LNG-supply-growth

Global LNG supply growth is set to accelerate in 2026

2 weeks ago
TTF-JKM-correlation

TTF-JKM correlation hit record levels in the first half of 2025

3 weeks ago
Tags: GazpromRussian gasTurkStreamVincent Barret
Editor

Editor

Related Posts

Change-in-LNG-sendout
Infrastructure

European gas storage levels remain on track to reach 80-85% capacity

1 week ago
global-LNG-supply-growth
LNG

Global LNG supply growth is set to accelerate in 2026

2 weeks ago
TTF-JKM-correlation
Supply and Demand

TTF-JKM correlation hit record levels in the first half of 2025

3 weeks ago
gas-storage
Gas Prices

Low gas storage levels in Rehden a cause for concern

4 weeks ago
European-LNG-imports
Gas Prices

European LNG imports surge by a staggering 40%

4 weeks ago
natural-gas-prices
Gas Prices

Middle East crisis demonstrates TTF gas price vulnerability

4 weeks ago
No Result
View All Result

Trending Posts

global-LNG-supply-growth

Global LNG supply growth is set to accelerate in 2026

2 weeks ago
Change-in-LNG-sendout

European gas storage levels remain on track to reach 80-85% capacity

1 week ago
European-LNG-imports

European LNG imports surge by a staggering 40%

4 weeks ago
Load More

Recent Post

Change-in-LNG-sendout

European gas storage levels remain on track to reach 80-85% capacity

1 week ago
global-LNG-supply-growth

Global LNG supply growth is set to accelerate in 2026

2 weeks ago
TTF-JKM-correlation

TTF-JKM correlation hit record levels in the first half of 2025

3 weeks ago
Load More
Logo

European Gas Hub is an online platform for sharing analysis and information about European natural gas markets more info

Categories

  • European Gas Prices
  • Energy Policy
  • European Gas Infastructure
  • European Gas Storage
  • Coal Market
  • Supply & Demand
  • Gas Supply & Demand
  • LNG
  • European Power Generation
  • Other

Recent Posts

European gas storage levels remain on track to reach 80-85% capacity

Global LNG supply growth is set to accelerate in 2026

TTF-JKM correlation hit record levels in the first half of 2025

Energise your Tuesday!

Sign up to receive our weekly newsletter with new European gas market reports, presentations & analysis. Every Tuesday.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 EuropeanGasHub | All Rights Reserved

No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • GLOBAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login

© 2020 EuropeanGasHub | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.