Citing analysts from ICIS, the Financial Times (FT) reported that Russian gas supplies to Europe significantly outpaced US LNG exports in May. It turns out Moscow managed to outstrip Washington and once again become the major gas supplier for the European market!
In the last month of spring, gas deliveries and LNG (liquefied natural gas) shipments from the US accounted for 14% of all European gas imports. Experts pointed out that it was the lowest figure since August 2022. As for Russian gas supplies, in May they swelled to 15% of all supplies to the EU, the UK, Switzerland, Serbia, North Macedonia, and Bosnia and Herzegovina.
Analysts believe that disruptions at one of the major LNG export facilities in Texas could have derailed US gas exports. The increase in Russian gas supplies via Turkey added fuel to the fire.
According to ENTSOG, the European Network of Transmission System Operators for Gas, Russia pumped up LNG supplies to EU countries through the Turkish Stream pipeline in May. The pipeline enabled a 38% increase from January to April 2024. Over these four months, 5.11 billion cubic meters of gas were delivered to EU countries via this route.
Importantly, on May 21, the EU Council approved a gas market reform, according to which member states can suspend natural gas supplies from Russia and Belarus starting in 2026. According to Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), Europe might incur a hefty loss of €1 trillion by the end of 2024 as a result of boycotting Russian gas suppliers.
