Posted on 09/02/2023 11:48:15 AM PDT by elpadre
European countries are buying more liquified natural gas from Russia than they did before its full-scale invasion of Ukraine last year, revealing a weak spot in the energy sanctions targeting Russia that is unlikely to be resolved anytime soon.
In the first six months of 2023, EU countries bought 40% more Russian LNG than they did in 2021, amounting to $5.7 billion in revenue for Russia, according to an analysis this week by the advocacy group Global Witness. This makes Europe the biggest customer for Russian LNG; only the U.S. sells more LNG to the bloc.
After the invasion, European countries quickly cut their dependence on natural gas delivered via pipeline from Russia, which until then had supplied about half of the continent’s principal fuel for electricity production and industrial facilities. But they’ve effectively swapped one fossil fuel import dependency for another that will be harder to kick.
Many European countries are accelerating plans to expand their LNG import infrastructure, while also speeding construction of renewables. Last winter, Russian gas cuts caused record-breaking energy price spikes that the continent is still recovering from: In Germany, the bloc’s top industrial economy, manufacturing activity has contracted for 14 consecutive months largely because of energy costs. This week Germany’s chancellor rejected a call from industry groups for greater energy subsidies, arguing that the government’s plan to boost LNG imports, especially from the U.S., is a better long-term solution.
But a greater reliance on LNG inevitably leads back to Russia, which is seeking to triple exports from its Yamal LNG facility in Siberia. That’s a problem for the bloc’s stated goal to completely eliminate its consumption of Russian fossil fuels by 2027. And it has made LNG a focal point for Ukrainian activists, who are calling for a ban on imports from Russia
(Excerpt) Read more at 12ft.io ...
excerpted:
“....A lot of European politicians were upset about perceived profiteering by U.S. oil and gas companies during the energy crisis,” said Paddy Ryan, assistant director for European energy security at the Atlantic Council. “So getting rid of a competitor to the U.S. is something they’d be loath to do.’”
Thanks to Merkel the Russian Spy
Russian revenues from their exports have been way up since the beginning of this fiasco. This is obvious despite all the under the table transactions designed to hide this fact. If you look at Russian consumer spending... this bounty is being passed down to them, and keeping Putin’s approval numbers up.
In addition to the increased purchases of Russian LNG the Europeans continue to buy the continuing flow of Russian natural gas that is moved via Ukrainian pipelines. Of course the purchases of Russian natural gas from Ukrainian pipelines can yield TEN PERCENT (OR MORE) FOR ALL THE VARIOUS “BIG GUYS”. Russian natural gas through the Nord Stream Network could have been done GRIFT FREE at much lower prices.
Why does Europe need LNG? They wind and solar energy!!! Go hug a windmill you idiots.
This article is deliberately misleading.
Europe previously imported little LNG from Russia, but a lot of pipeline gas.
The small thing (LNG), though 40% bigger, is still small. The big thing (pipeline gas) is over 90% gone. The net result is that Russia’s total share of the European gas market (LNG plus pipeline) has been dramatically replaced by other suppliers (especially Norway and the USA).
The loss of Russian gas exports to Europe (85% of Russia’s total 2021 natural gas exports) has been so huge that last quarter, Gazprom operated at a net loss.
Even the small remains imports of Russian LNG are. Planned to be phased out by the EU
Ukraine has announced that it will not renew transshipment rights for Russian gas next year, giving landlocked Central European countries like Hungary and Austria one more Winter to complete the transition to other suppliers.
Why not? They can rely on the U.S. Taxpayer to make up the difference.
“ Ukraine has announced that it will not renew transshipment rights for Russian gas next year, giving landlocked Central European countries like Hungary and Austria one more Winter to complete the transition to other suppliers.”
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Next year… always next year. Have you ever wondered why Zelensky has NOT STOPPED the transshipments of Russian natural gas (besides the cash fees he charges and the natural gas the Ukrainians manage to “divert”)? The main reason is that the Ukrainians themselves need that Russian natural gas. They really do need it.
perhaps some kind Freeper could post recent
NG prices ... TIA
—”This article is deliberately misleading.”
I suspect this article is more than misleading it is false.
“Russia cuts LNG exports in January-June by 9.4%, flows to Europe steady - data”
Russia cuts LNG exports in January-June by 9.4%, flows to Europe steady - data
https://archive.ph/SZYRN#selection-387.0-387.78
Russia’s LNG exports decreased 3% on the year to 16.4 million tons in the first half of 2023, according to Kpler data, as the effects of wartime sanctions dovetailed with the more mundane effects of maintenance schedules.
https://www.energyintel.com/00000189-2650-d3a6-a7eb-3ef158c10000#:~:text=Russia‘s%20LNG%20exports%20decreased%203,mundane%20effects%20of%20maintenance%20schedules.
Apr 27, 2023 — On Thursday, Izvestia, a Kremlin-linked publication, reported that pipeline exports might fall 50 percent in 2023, citing a government forecast.
https://www.nytimes.com/2023/04/27/business/energy-environment/russias-gas-exports-2023.html
Jun 5, 2023 — In addition, LNG exporters face a higher tax rate on profits from 2023: it has been raised from 20% to 34%. I
https://www.osw.waw.pl/en/publikacje/osw-commentary/2023-06-05/unfulfilled-ambitions-russias-lng-sector-grip-sanctions
I think it’s misleading as well. It’ll be interesting to see when not if the middle east gets heavy into lng.
—”It’ll be interesting to see when not if the middle east gets heavy into lng.”
The Euro LNG market is expanding rapidly.
“If you build it, they will come”
Or something like that.
The transport costs of LNG equals onshore pipelines at ~2,000 miles and 800 miles for offshore transport.
BUT WAIT, there is more...gas-to-power, gas-to-liquids, gas-to-solids.
“Gas-to-wire attracted considerable attention in emerging markets where natural gas is primarily used to meet rapidly growing electricity needs. The largest gas-to-wire project is currently developed in Brazil in the Açu port of Rio de Janeiro. The project consists of a 1.3GW combined cycle plant integrated to an LNG regasification terminal, a transmission line and a substation connected to the national grid.”
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