Spain is emerging as a significant player on the world stage by leveraging its vast network of gasification facilities that receive and dispatch LNG by ship. The Spanish gas system stands as a continental hub, housing a sizeable regasification capacity that supports arrivals and re-exports across Europe. The volume of liquefied natural gas transported by sea has reached new historical highs.
Europe is gradually reducing its dependence on Russian gas as pipeline deliveries decline. While Russia has constrained supply, official sanctions have not universally blocked gas imports. The European Union has aimed to cut Kremlin funding channels for military activities in Ukraine, but the impact on energy flows remains nuanced in the near term.
Beyond raw materials, Spain is becoming a major gateway for Russian gas into Europe. The Spanish market has shown itself as a central entry point for LNG carried by ships from Russia to the European Union. Energy companies are benefiting from Spain’s extensive regasification network and are directing portions of this gas to other markets as needed.
Spain managed to fill its gas reserves completely for the first time
As a result, the flow of Russian gas into Spain has continued to rise since the onset of the conflict, increasing by more than 50 percent in the current year. Data from Enagás, the operator of the Spanish gas system, and the Strategic Reserves Authority show that Spain has become Europe’s largest importer, outranking France and Belgium.
Estimates from the Institute for Energy Economics and Finance Analysis, a think tank based in the United States, place EU payments for Russian gas at roughly 5.51 billion euros between January and July, with about a third of that total concentrated in Spain. Spain’s purchases of Russian gas account for a substantial portion of its LNG import costs, underscoring the country’s role in regional supply chains.
Industry sources indicate that privately negotiated payments in the first half of the year totaled about 1.65 billion euros for Russian gas into Spain, representing roughly a quarter of Spain’s LNG import spend of 6.3 billion euros. These insights reflect the latest assessment from IEEFA, highlighting Spain’s position at the top of the buyer list, ahead of France, Belgium, and the Netherlands in recent months.
Government guidance
The Spanish government has publicly urged energy companies to curb Russian gas purchases. Despite these calls, the absence of a coordinated EU veto means that many companies still rely on long-standing contracts that continue to supply Russian gas in the near term.
Regulators and energy operators have received formal communications urging them to pause new Russian supply contracts and to refrain from signing fresh agreements once current ones expire. The aim is to accelerate diversification toward alternative LNG sources and reduce dependence on Russian supplies, aligning with European Commission guidance issued to major operators in the sector.
Teresa Ribera, the vice president and minister responsible for ecological transition, has stressed the need for unity in policy and for diversifying LNG supply arrangements while phasing out contracts linked to Russia. Her message to Spanish energy players underscores the broader strategic objective of reducing exposure to Russian gas over time.
No EU veto
The European Union has enacted several sanctions packages designed to constrain Russia’s ability to fund the war in Ukraine. However, a blanket ban on Russian gas purchases has not been included in these measures. After more than a year and a half of conflict, Spain stands as a leading import hub for Russian gas by sea and continues to re-export portions of that supply to other European markets.
Several factors explain the ongoing rise in Russian gas purchases. Long-term contracts signed before the military actions and the risk of penalties under sanctions have kept some flows intact. Additionally, the diversion of LNG tankers to other European destinations during factory outages or supply disruptions has contributed to higher arrivals in Spain, supporting broader European needs.
Naturgy, Spain’s largest gas operator, maintains a long-term contract for LNG via the Yamal liquefaction facility. The stake in this project is held by a consortium including a private Russian group, Novatek, along with French and Chinese partners. The agreement specifies a steady supply of just over 3 billion cubic meters of gas annually through 2042.