Gas returned to Europe last winter in liquid form (LNG), transported by sea. Without it, European needs could not have been met. The energy mix is being restructured, but despite Europe’s desire to wean itself off Russian gas, a European Union report shows that due to a lack of pipelines, this addiction has shifted to the maritime transport of LNG from the Arctic, especially for France. A situation that should push the European Union to become autonomous in the long term and perhaps to assert itself in order to move away from fossil fuels.
The European Union’s latest report on its 2022 gas market shows that France, Spain and the Netherlands were the top three importers of liquefied natural gas LNG. Marc-Antoine Eyl-Mazzega, Director of the Center for Energy and Climate at the French Institute for International Relations (IFRI), recalls in a note published this week that after the closure of Russian pipelines, “liquefied natural gas has made a comeback in Europe and saved industries, governments and people.”
As the EU tries to wean itself off Russian gas, the increase in Russian LNG imports puts several European countries in a difficult position. According to the report, 41% of French LNG imports came from the United States and 17% from Russia. France is therefore not totally dependent on Russia, but if we look at the corresponding quantity, France is currently the main European importer of Russian LNG.
With its gas reserves in the Arctic, Russia has the world’s largest gas reserves. Siberian deposits and mines supported 15% of Russia’s GDP in 2017. The energy production policy of Vladimir Putin’s regime favors the export of gas by sea, in liquefied form (LNG), since the conflict in Ukraine. “Russia’s private LNG producer, Novatek, has increased its exports to Europe by 13.5% [en 2022] to a total of 14.65 MT from Yamal LNG, explains Hervé Baudu, an Arctic maritime expert from the French National Maritime Academy. The Yamal LNG production plant is running at 120%. The second project of Memel, operator of Arctic LNG 2, whose first gas liquefaction train has been announced to start production by the end of the year, is located on the Gydan peninsula, in the recent port of Utrenny opposite Sabetta on the Ob river. It is likely to operate at only half its capacity due to Western sanctions which deprive it of part of its turbines. Novatek has announced that the second train under construction out of the three in the project is expected to enter service in 2024.”
Kadri Simson, European Commissioner for Energy, reacted in March to the increase in the import of Siberian gas to Europe. “We will continue and expand our efforts to diversify worldwide and secure supplies to Europe. […] last year we received about 20 billion m3 of Russian LNG. I believe that we can and should get rid of Russian gas completely as soon as possible, while keeping in mind our security of supply. I encourage all member states and companies to stop buying Russian LNG and not to sign new contracts with Russia once existing contracts expire.”
The French result of importing Russian LNG has been strongly criticized. Mediapart, on the left of the French political spectrum, reminds us that the gas company TotalEnergies repatriated 1.5 billion in dividends in 2022, from the Russian gas trade, while that country is conducting a military conflict that is unjustified from the point of view of international law.
On the other side of the Atlantic
On the other side of the Atlantic, the United States has become the main supplier of LNG to France and Europe. Marc-Antoine Eyl-Mazzega of IFRI also states in his note that “the EU-US LNG corridor became the main LNG trade route in 2022. However, this has come at a high cost – the EU’s gas import bill has increased tenfold from 2020 and threefold from 2021 levels.”
LNG from the USA also raises ethical questions. The fracking method of extraction damages the water table. This method is prohibited on French territory since July 13, 2011 because of its impact on the environment. On this subject, Europe leaves it to its members to decide on their regulation, and advises caution. Expanding the European mix of gas producers subjects Europe to other compromises. Isn’t it time for it to invest in energy autonomy?
Thirty-two port projects
The NGO Friends of the Earth denounced in its February press release the plans to build new port platforms throughout the EU to receive LNG. “Thirty-two LNG import port terminal projects are planned across Europe, including the Le Havre floating LNG carrier project,” she says. This TotalEnergies project would double France’s import capacity at a cost of 7 billion euros, according to the company. The project is expected to be completed in September 2023. The NGO also states that it is time to step up renewable energy production in this period of energy insecurity.
For Marc-Antoine Eyl-Mazzega these terminals are necessary to improve the European gas supply logistics which for the next winter will still be tight, although the restart of the nuclear plants and renewables allow the EU to store gas since last October. “As a last resort, the return of some supplies from Groningen [Pays-Bas], as politically sensitive as it may be, should be considered and prepared,” he concludes in his note, referring to Russian gas. Within the EU, there is still no consensus, while France still imports Russian gas, the Minister of Climate and Energy of the Netherlands Rob Jetten says he will not sign any more new contracts and will gradually reduce his imports based on his current contracts.
Camille Lin, PolarJournal
Link to the report: Market Observatory for Energy of DG Energy, Quarterly report On European gas markets, European Commission, 2023, volume 15 (issue 3, covering third quarter of 2022).
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