Russia Accounted for a Fifth of EU Gas Imports in Q1

Nineteen percent of natural gas imported into the European Union in the first quarter came from Russia, up two percentage points from the previous quarter and four percentage points against the first quarter of 2023, the European Commission has reported.

Compared to the first quarter of 2021, before the Russia-Ukraine war broke out, the figure marks a fall of 30 percentage points in the Russian share of EU gas imports, according to the Commission’s quarterly gas market report.

The 27-member bloc imported 70 billion cubic meters (2.5 trillion cubic feet) of gas in January–March 2024, a decrease of five percent quarter-on-quarter and one percent year-on-year. Of the total, pipeline gas accounted for 59 percent and liquefied natural gas (LNG) 41 percent.

Russia accounted for 17 percent of gas imported by the EU via pipeline in the first quarter. Norway continued to be the EU’s top pipeline gas supplier with a share of 54 percent, followed by North Africa (18 percent). Azerbaijan was the EU’s fourth biggest pipeline gas source accounting for seven percent.

For LNG, Russia accounted for 20 percent, while the United States remained the EU’s biggest source accounting for 50 percent. Qatar came third accounting for 10 percent.

France was the largest importer in the first quarter accounting for 22 percent of total volumes, followed by Spain (18 percent) and the Netherlands (14 percent).

LNG Boom

While the EU’s LNG imports dropped five percent quarter-on-quarter and six percent year-on-year, there was a 91 percent increase compared to 2021.

The EU may need to further raise LNG imports in light of the expected expiry of the Ukraine-Russia gas transit deal at the end of 2024, which would result in the EU needing to reroute or find new sources for 7.2 Bcm (254.3 Bcf) of gas, according to Rystad Energy.

Nearly half of pipeline gas volumes from Russia supplied to the EU and Moldova are delivered via Ukraine, totaling 13.7 Bcm (483.8 Bcf) last year, Rystad noted in an analysis published July 16.

The EU is in talks with Azerbaijan as a substitute route for Russian gas, Rystad said, noting other routes exist but have limited export capacities.

Azerbaijan President Ilham Aliyev confirmed at a forum July 20, "We've been approached by Ukrainian authorities and the EU to facilitate in prolongation of this contract [transit deal]”.

Rystad gas market analyst Christoph Halser said, “Without Azerbaijan or another third party transiting the gas following a swap deal with Russia, the EU will require about 7.2 Bcm of gas to be sourced from the LNG market”.

“Terminals in Poland, Germany, Lithuania and Italy could forward these volumes to the most affected counties, such as Slovakia and Austria”, Halser said in the Rystad analysis.

To contact the author, email jov.onsat@rigzone.com