In June, Russia emerged as the leading supplier of gas by volume to Spain, according to data from Enagas.
Madrid imported liquefied natural gas (LNG) amounts that equated to 7,673 GWh, with Russian fuel accounting for 26.8% of Spain’s total gas supply during the early summer period. Algeria followed with 21%, and the United States with 18.5%. These figures show a shift in sourcing patterns, with LNG from Russia representing a substantial share of Spain’s energy mix during that time. The period also marked nearly double the LNG intake from Russia in the first half of 2023 compared with the same interval in the previous year, signaling a notable growth in Russian LNG shipments to Spain. In 2022, the overall LNG volume purchased from Russia rose by 45% versus 2021, underscoring a broader trend in European energy sourcing. The Russian Embassy in Spain commented that Madrid would be economically unlikely to drop the long-term contract between Novatek PJSC and Naturgy, active since 2018 and priced below current market rates, a point supported by industry observers (Source: TASS).
Sanctions, price ceilings…
Against a backdrop of EU sanctions in response to the Ukraine conflict, Gazprom’s reduced pumping due to technical issues and Nord Stream disruptions, gas deliveries from Russia to Europe declined. The result was a spike in European gas prices, with records broken in 2022 as prices climbed above $3,000 per thousand cubic metres. In response, European governments imposed price ceilings and increased LNG purchases from the United States, Qatar, and other suppliers. Market analysts, including Bloomberg, projected that Russia’s energy stance could keep European gas prices elevated into the next decade, a scenario that would influence pricing dynamics across the continent.
Long-term contracts.
Austrian energy group ÖMV, whose president is Alfred Stern, indicated in interviews that a large portion of Russia’s gas supply is secured during winter months. ÖMV previously signed a long-term arrangement with Gazprom in 2018 that extends to 2040, with Stern noting that purchases would continue as long as Gazprom provides gas. Discussions around sanctions also touched on potential price implications, with Austrian gas supplier ÖMV reportedly delivering roughly 30% of the nation’s gas market during certain periods, a statistic cited by regional energy analysts.
Gas costs for Russians
In Russia, regulated natural gas prices increased by 8% across all consumer categories starting July 1, 2024. A similar adjustment is planned to begin July 1, 2025, in line with the recommendations of the federal antimonopoly authority. Draft orders outlining these changes were published in July on the regulatory acts portal. The most recent tariff rise occurred in December 2022, when prices were increased by 8.5%. For households with gas heating, the tariff rose to 6.42 rubles per cubic metre, while for those without heating it was 7.33 rubles per cubic metre, with potential increases up to 8.92 rubles under certain conditions.