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Europe: EU seeks to cut Russian LNG imports while boosting renewable energy expansion

The European Commission (EC) is advocating for a reduction in reliance on Russian liquefied natural gas (LNG) while accelerating the expansion of renewable energy sources. To replace Russian imports, the European Union plans to seek alternative natural gas suppliers, including the United States, and increase investments in renewables, according to EU Energy Commissioner Dan Jorgensen.

Following Russia’s invasion of Ukraine in February 2022, the EU committed to phasing out Russian fossil fuels by 2027. While pipeline gas imports from Russia have declined, LNG imports from the country increased last year. Jorgensen stressed the importance of prioritizing domestic energy production over spending taxpayer money on Russian gas, which indirectly supports Russia’s war efforts.

Although the EU has not imposed a full ban on Russian LNG imports, a measure introduced in June 2024 prohibits LNG transshipments in European ports. Previously, Russia used ports in Northern Europe for transshipment before exporting to Asian markets. With the new restriction in place, more Russian LNG is being redirected to Europe instead.

Despite an overall decline in LNG imports to Europe in 2024—reaching their lowest level since 2021—nearly half of all imported LNG now comes from the United States, while Russian LNG imports have increased by 18%. France, Spain, and Belgium account for approximately 85% of these Russian LNG imports.

To accelerate the transition to renewable energy, the European Commission is preparing regulatory changes to facilitate infrastructure development. However, for industrial sectors and residential heating—where gas cannot be quickly replaced by electricity—the EU will seek alternative suppliers. Jorgensen emphasized that ensuring a stable, affordable, and non-Russian gas supply is a priority, with increased imports from the US being one potential solution.

While the European Commission does not directly purchase natural gas, it has developed plans to strengthen cooperation with non-EU LNG suppliers. Additionally, it is considering investments in LNG export infrastructure abroad to secure long-term contracts at more stable prices. Under current EU regulations, all gas procurement contracts must end by 2049 to align with the EU’s net-zero emissions goal for 2050.

Jorgensen confirmed that the EU is working on new regulations to enhance oversight of the European gas market and prevent speculative trading that drives up prices. The Commission is also expected to introduce financial instruments to reduce the link between wholesale gas prices and consumer electricity costs.

Despite rapid expansion in renewable energy, gas prices remain a key factor influencing electricity costs for many European households due to existing energy market regulations.

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