European gas imports shift as Russian supplies regain share while US LNG remains steady
Recent data reveal a meaningful rebalancing in Europe’s gas supply mix, with Russian deliveries edging ahead of US exports for the first time in nearly two years. This trend, reported by the Financial Times citing ICIS, signals a nuanced recovery of Russian gas presence in Europe amid ongoing adjustments to supply routes and price dynamics. Energy planners across member states are watching closely, balancing reliability with price risk and the need for diversification in a market shaped by evolving pipeline flows, LNG trades, and storage considerations. The May figures underscore how pipeline gas and LNG compete for market share, influencing contract structures and the directional flow of shipments across the continent.
Tom Marzek-Manser, head of gas market analysis at ICIS, noted the unexpected uptick in Russian gas share despite recent volatility. He observed that European gas markets have long featured shifts in supplier mix, and the latest development adds another layer to discussions around energy security, supplier diversification, and leverage in price negotiations for European buyers. The comment aligns with a broader pattern in which European gas imports reflect seasonal demand shifts and strategic responses to global LNG availability, transport costs, and geopolitical considerations. The May data show that combined Russian pipeline gas and US LNG shipments exceeded the level of US supply alone, highlighting the persistent role of traditional pipeline corridors even as LNG trade remains a dynamic competing force in the European gas market.
Historically, the United States surpassed Russia to become Europe’s largest gas supplier in September 2022. Since 2023, the US has accounted for roughly one-fifth of Europe’s total gas imports. In May, European intake benefited from a mix of Russian pipeline gas and LNG shipments from the United States, collectively surpassing US flows alone. Russian supply accounted for about 15 percent of Europe’s total gas imports, while US LNG represented roughly 14 percent. These figures illustrate the ongoing balance between expanding LNG access and maintaining long-standing pipeline relationships. European energy planners continue to reassess storage levels, seasonal demand, and interconnections as market dynamics shift and sanctions, market access, and logistics intersect with industrial needs.
Separately, Spain resumed iron and steel imports from Russia after a three-month pause. Reports indicate Madrid halted regular purchases in December 2023, with trade resuming in April and resulting in approximately 21.3 thousand tons of iron and steel exported to Spain, valued at about 8 million euros. This renewed non-energy trade activity in mid-year highlights how European economies align broader trade flows with energy security considerations. Analysts also note a discernible rise in LNG exports from Russia over the past five months, indicating continuing experimentation with export routes and product mixes as Europe navigates a rapidly changing energy landscape.