Daily Energy Report
The European Union’s Natural Gas imports, Russia-Iran energy cooperation, China’s Russian fuel oil imports, new AI technology in the oil industry, implications of Europe’s energy crisis, and more
CHART OF THE DAY: EU LNG Imports Climb to All-Time High
Figure (1) above shows that the LNG segment accounted for 48% of the EU’s total gas imports in April, followed by Norway’s mostly piped gas flows at 29%, while Russia (excluding its LNG exports) has retained a share of 7% of total EU gas imports. Russian piped gas supplies to the EU jumped 5% MoM in April, while Algerian gas exports to the continent were up by 20% MoM, based on the EOA’s calculations.
Excluding the UK, the EU imported 9.2 million tons (equivalent to 12.6 bcm) of LNG in April, up from 8.1 million tons in March, a 13% increase MoM, the highest monthly figure since the start of 2023. The US remains the largest LNG supplier to Europe, delivering more than 75% of its April’s LNG exports to the continent.
The European appetite for LNG was high in April thanks to lower spot LNG prices attracting utilities to maintain high gas stockpiles— which increased to 59.6% by the end of last month and following the winter season.
EOA’s Main Takeaway:
LNG as well as additional supplies from key producers like Algeria have helped the EU reduce its reliance on Russian gas which hit historic lows in 2022. Indeed, this declining Russian share would not have been possible if it weren’t coupled with other EU measures aimed at reducing gas demand in member states, as well as a big boom in LNG imports. Although Russia has lost most of its market share in the European market, it still supplies Europe with a significant volume of its gas needs – a point we have been emphasizing in our reports over the past months.