Spain, the most important European purchaser of liquefied pure gasoline from Russia, is urging importers to not signal new contracts with Moscow because it seeks to crimp revenues for the Kremlin’s warfare machine.
LNG importers in Spain acquired a letter from the federal government asking firms not to enroll to new purchases from Russia, in accordance with individuals with information of the matter. The Spanish authorities’s request isn’t binding as there aren’t any sanctions in place, and solely refers to new contracts, in accordance with the individuals, who declined to be named.
Europe’s pipeline gasoline flows from Russia have fallen to historic lows because the invasion of Ukraine final yr. However to make up for the shortfall, LNG shipments from everywhere in the world have surged — together with from Russia.
Spain has nearly doubled imports of Russian LNG because the outbreak of the warfare, highlighting how dependent Europe nonetheless is on Moscow.
Naturgy Power Group SA, Repsol SA, TotalEnergies SE, Axpo Holding AG, Pavilion Power, Enagás SA, Met Power, Enet Power, Energias de Portugal SA, Compañía Española de Petroleos SA and BP Fuel & Energy Iberia have been despatched a letter on March 14 by Deputy Prime Minister Teresa Ribera, who’s accountable for Spain’s power coverage.
The letter, seen by Bloomberg Information, doesn’t explicitly point out spot contracts however makes a basic plea to “intensify the diversification of provide of liquefied pure gasoline and do with out these from Russia.” Ribera confirmed in an emailed response to questions that she despatched the letter 10 days in the past and several other firms replied.
Axpo, Repsol and Enagás responded to the notification saying they’re not buying LNG from Russia, in accordance with a spokesperson of the ministry.
“We will affirm that Axpo has not introduced any Russian LNG cargoes into Spain because the begin of the warfare in Ukraine,” an organization spokesperson mentioned.
The European Union’s power chief Kadri Simson earlier this month known as for shipments to be stopped, saying firms shouldn’t renew long-term contracts as soon as present ones finish. She didn’t announce any particular measures.
Spain is the EU’s prime purchaser of Russian LNG to this point this yr, ship-tracking information on Bloomberg present. The nation was pressured to hunt further purchases final yr after shipments from longstanding gasoline provider Algeria declined following a diplomatic feud between the 2 nations.
Spain solely receives Russian gasoline as LNG, as its utility Naturgy Power Group SA holds a 20-year contract to buy the gas from Yamal LNG within the Arctic till 2038. The corporate declined to remark.
In January the German authorities mentioned it wished to curb imports of Russian liquefied pure gasoline, with out being particular how it might do that. Up to now, the EU has stopped in need of discussing any ban at a regional degree.
(with Alonso Soto)
Picture by Lurii Garmash through iStock