Reliable Suppliers and Diversification of the Sources of Gas and Oil Supply to the EU
To replace Russian gas imports, the EU is seeking alternative supply routes of LNG.
As mandated by the European Council, the Commission and Member States are seeking to coordinate the use of existing infrastructure and to negotiate joint gas and hydrogen purchases, through the establishment of the EU Energy Platform Task Force.
The first created Regional Task Force was dedicated to supporting Southeast European countries, which have traditionally been highly dependent on Russian supply. The Central-Eastern regional group and the North-Western Europe, South-Western Europe and Baltics and Finland regional groups were initiated in the summer of 2022 but their action plans are still in preparation.
An informal expert group named “Industry Advisory Group” (“IAG”) will help the Platform to meet its objectives, by addressing necessary feedback on the options for demand aggregation and joint gas purchasing, as well as insights on how to ensure that the EU goals on reducing its dependency from Russian gas will be achieved. The IAG is composed by 28 permanent members and 8 observers, mainly energetic companies.
In 2022, Europe was the largest customer in the global LNG market, whereas in previous years, the EU lagged behind Japan and China on LNG imports. Indeed, EU countries imported 101mn tonnes of LNG in 2022, 58 per cent more than the previous year[1].
Statement by President von der Leyen issued on December 20, 2022:
“We have made great steps forward this year in diversifying our gas supplies and replacing Russian fossil fuels. But we know that 2023 will be tougher, and we may face a potential shortfall of almost 30 billion cubic metres of natural gas next year. By making joint purchasing of gas a reality, we will use the EU’s economic and political weight to secure more supplies for our citizens and industry. Today’s meeting will kick start this process.”
Statement by President von der Leyen issued on December 12, 2022:
“In just a few months, we have turned the REPowerEU plan into many different legislative proposals and actions on the ground. And I think it is worth looking at that. Basically, we have taken ten different actions in the last ten months.
The first one is: we have enormously diversified away from Russian fossil fuels, away from Russian gas supplies towards other reliable, trustworthy suppliers. Second, we are saving energy. We have introduced, as you all know, the target to reduce gas demand by 15%. If we look at the data from early autumn, we are very well on track. It is good that we are saving energy and we have to keep on saving energy. The third point is: we are boosting the roll-out of renewables. If you look at the year 2022, we will have added almost 50 gigawatts of new capacity that is almost doubling the additional capacity of renewable energy, mostly from wind and solar. For us, this is very important because this is not only good for the planet, but we know that renewables are home-grown, they create good jobs here and they create independence and security of supply..”
Statement on Energy by President von der Leyen issued on September 7th, 2022:
“We have been working very hard to diversify away from Russia towards other reliable suppliers, like for example the United States or Norway, Azerbaijan, Algeria and others. Actually today, Norway is delivering more gas to the European Union than Russia. And we were able, if you look at the cuts that Russia has done in gas, to completely compensate so far the gas imports through other reliable suppliers.
[…] So here, the objective is: We must cut Russia’s revenues, which Putin uses to finance his atrocious war in Ukraine. And now our work of the last months really pays off. Because, at the beginning of the war, if you looked at the imported gas, 40% of it was Russian gas, since a long time. Today, we are down to 9% only”.
“While Russia has cut supplies of natural gas to several EU Member States, the United States and other producers have stepped up. Since March, global LNG exports to Europe have risen by 75 percent compared to 2021, while US LNG exports to Europe have nearly tripled. To facilitate these efforts, the European Commission and Member States, in line with a mandate given by the European Council in March 2022, established the EU Energy Platform to coordinate measures to secure reliable and diversified energy supplies for the EU, including through the voluntary common purchase of pipeline gas, LNG, and hydrogen. The Commission has also established the first Regional Energy Platform for South East Europe to support gas diversification of the region traditionally dependent on Russian supplies. The United States is a key partner for the sustainable diversification of gas supplies to this region and other acutely impacted EU Member States, including by supporting demand reduction and accelerating clean technologies.” [2]
Overall EU gas supply
- EC, Energy, Diversification of gas supply sources and routes
- EC, Energy, EU Energy Platform
- Infographic - Where does the EU’s gas come from?
January 2023:
- New reports highlight 3rd quarter impact of gas supply cuts
- Europe leads pack on LNG imports as global competition for fuel heats up, Financial Times
- The natural gas war premium is gone, Financial Times
- Brussels plans energy market overhaul to curb cost of renewables, Financial Times
December 2022:
- EU energy regulator casts doubt on bloc’s ‘untested’ new gas price cap, Financial Times
- EU Energy Platform: Work advances on joint gas purchasing after legal proposal is agreed by Energy Ministers
- Statement by President von der Leyen on ‘REPowerEU: outlook on EU gas supply in 2023’
- REPowerEU: New industrial Alliance to boost the EU’s solar power and energy security
- Austria: EIB supports RLB NÖ-Wien’s investments in renewable energy and energy efficiency
- EU’s industries dependent on electricity and natural gas
October 2022:
- Commission establishes Industry Advisory Group to support the EU Energy Platform
- Register of Commission Expert Groups and Other Similar Entities
- Proposal for a Council Regulation enhancing solidarity through better coordination of gas purchases, exchanges of gas across borders and reliable price benchmarks
- Communication From The Commission To The European Parliament, The European Council, The Council, The European Economic And Social Committee And The Committee Of The Regions Energy Emergency - Preparing, Purchasing And Protecting The Eu Together
- Questions and Answers on proposals to fight high energy prices and ensure security of supply
- The E.U.’s plan faces a new hurdle, as oil producers led by Saudi Arabia aim to keep global prices high – The New York Times (nytimes.com)
September 2022:
- Denmark, Germany and Poland warn of ‘sabotage’ after Nord Stream leaks | Financial Times
- NATO, EU cite dangers to vital infrastructure after pipeline ’sabotage’ | Reuters
- Nord Stream leaks: Sabotage to blame, says EU - BBC News
- What We Know About the Mysterious Nord Stream Pipeline Leaks - The New York Times (nytimes.com)
- Two Broken Pipelines, One Big Mystery - The New York Times (nytimes.com)
- Nord Stream Gas Leaks Could Be ‘Unprecedented’ Climate Disaster - Bloomberg
July 2022:
- EC, Representation in France, Can Europe do without Russian gas?
- EC, Representation in France, The European Union is doing nothing to reduce its dependence on Russian gas! Really?
May 2022:
March 2022:
Gas Supply From Africa
September 2022:
- Enel and Sonatrach sign agreements to increase volumes and adjust natural gas supply contracts - corporate.enel.it
- Gas, accordo di Enel con Sonatrach - MilanoFinanza.it
- Gas, l’Algeria conferma le forniture all’Italia - MilanoFinanza.it
- Who gets to use gas? - The New York Times (nytimes.com)
- Europe Optimal Market for Senegal’s Gas, President Sall Says, Bloomberg
- Eni acquires BP’s business in Algeria, operating two major gas fields, Eni.com
May 2022:
April 2022:
- Italy-Congo deal sealed to up gas supply - English - ANSA.it
- Italy Signs Gas Deals in Angola, Congo to Cut Russia Ties
- Italy clinches gas deal with Algeria to temper Russian reliance, Reuters
Gas Supply From the U.S.
August 2022:
July 2022:
June 2022:
- U.S. Energy Information Administration - EIA - Independent Statistics and Analysis
- The US Is Now Sending the Bulk of Its Export Gas to Europe - Bloomberg
Gas Supply From Canada
August 2022:
- EDITORIAL: Gas export plan to Germany out of gas | Toronto Sun
- Germany Gas Crisis: Justin Trudeau Promises Regulatory Help on Exports - Bloomberg
Gas Supply From Norway
September 2022:
- Nord Stream leaks will not delay Oct. 1 Baltic Pipe start-up | Reuters
- EC, Launch of the Baltic Pipe
- Norway seeks to help EU cope with gas price pain after Russia cuts | Reuters
- Norway gas lifeline for Europe is the smart move | Reuters
- Norway on track for record gas export, will be ready for winter -Gassco CEO | Reuters
August 2022:
Gas Supply From Spain
September 2022:
- France to re-evaluate MidCat gas pipeline across Pyrenees with open mind, Portugal says | Reuters
- French hostility frustrates Spain’s gas pipeline dream | Financial Times (ft.com)
- Spain-France gas pipeline capacity increased and available, Spain says | Reuters
- Spagna: “Presto il gasdotto virtuale con l’Italia”
- Gas companies working ’urgently’ to expand France-Spain pipeline | Reuters
- Spain Plans to Ease German Gas Shortage With Revived LNG Terminal - Bloomberg
- France’s Macron says no need for new gas pipeline between Spain and France | Reuters
Gas Supply From France
September 2022:
Gas Supply From Portugal
September 2022:
- Portugal Could Hold an Answer for a Europe Captive to Russian Gas - The New York Times (nytimes.com)
[1] See Europe leads pack on LNG imports as global competition for fuel heats up, Financial Times, January 7, 2022.
[2] See Joint Statement by President von der Leyen and President Biden on European Energy Security, June 27, 2022, Brussels, available here.
- The Cleary Gottlieb EU Energy Disruption Resource Center
- Restrictions / Redistribution of Extraordinary Profits on EU Energy Companies Arising From the Energy Disruption
- State Aid to Industry
- Managing and Ensuring Security of EU Gas Supplies
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Diversifying the EU's Energy Mix
Diversifying the EU's Energy Mix
- Long-term Intervention: Investments in Renewable Sources
- Short-term Intervention: Reducing/Capping Gas Consumption
- Short-term and Long-term Intervention: Coal-fired and Nuclear Power Plant Revamp
- Fast-track Permit-granting Process for Renewable Energy Projects
- Investor-state Arbitration in the Energy Sector Likely as Green Transition Accelerates
- Mechanisms to Lower the Prices of Gas