(Montel) Europe's gas supply would be “extremely difficult” in the event of a ban on Russian LNG imports, due to tensions on the global gas market, a director of energy company Axpo said on Thursday.
The way in which the European Union will be able to do without imports of Russian gas by 2027 is “not clear”, estimated Alvaro Baillo, deputy director of the gas branch of Axpo in Spain and Portugal, during the Iberian Energy Day conference organized by Montel in Madrid.
The 27 member states plan to gradually reduce their imports of Russian gas to reduce revenues used to finance Moscow's war against Ukraine.
Eastern European countries “have clearly expressed their desire to maintain Russian gas supplies,” Baillo said, adding that a total ban on Russian LNG imports would increase these countries' dependence on other producers, “mainly the United States, Qatar and Algeria”.
Gas shortage?
The Axpo director also highlighted the “failure of the West” in applying sanctions on Russian energy exports, which allowed the Russian economy to “rebound”.
Russian GDP grew by 3.6% in 2023 – compared to 0.4% in the EU zone – and is expected to increase by a further 3.2% in 2024.
Russia's oil and gas sector remained “surprisingly stable” with export revenues up 8% during the first nine months of 2024, compared to the same period before the full-scale invasion of Ukraine in February 2022 , he added.
Mr Baillo insisted that Russian LNG remained “very important” for Europe, especially given the tension in the global liquefied gas market.
Gas prices rose sharply earlier this month due to colder weather and concerns over gas supplies once the gas transit agreement with Ukraine expires on January 1, 2025, as well as withdrawals in European gas storage which started earlier than last year.
