Slovakia

The European Union (EU) has taken a number of steps in recent years to end its reliance on Russian natural gas, which accounted for nearly half of the bloc’s supplies before the 2022 invasion of Ukraine. But while the changes happening in Europe might provide a boost for global LNG exporters, including projects in operation or under development in the U.S., the EU’s policy shifts have also introduced greater uncertainty around demand. In today’s RBN blog, we look at the increasing difficulty in predicting EU gas demand and what it means for U.S. exporters and the rest of the global LNG market. 

The European Union (EU) has had to rethink and reconfigure major elements of its policies around natural gas since Russia’s invasion of Ukraine in February 2022. Prior to the war, Russian volumes accounted for 45% of the EU’s imports of natural gas, nearly double the supply from second-place Norway, but Russian gas supplies have dropped considerably since then, impacting the global LNG market. In today’s RBN blog, we look at the EU’s continued efforts to reduce its reliance on Russia, how it’s trading supply risk for price risk, and what the changes could mean for U.S. LNG exporters.