Germany tightens energy policy, rejects Russian LNG shipments

Germany has instructed its state-operated gas import terminals to reject any liquefied natural gas (LNG) shipments from Russia, following notice of a planned delivery.

On November 6, the German economy ministry issued a directive to Deutsche Energy Terminal (DET), instructing the company to refuse any Russian LNG deliveries, Caliber.Az reports citing Financial Times.

This order came after DET informed the German authorities that its Brunsbüttel facility was set to receive Russian cargo on November 10.

In a letter seen by the Financial Times, the ministry explained that the decision was made to protect the country’s "overriding public interests" and emphasized that the operator should “reject LNG deliveries from Russia until further notice.” This move highlights Germany’s commitment to reducing its dependence on Russian energy sources, a goal that has taken on increasing urgency since Russia's invasion of Ukraine in 2022.

The warning comes at a time when LNG imports are expected to play a significant role in Europe's energy negotiations, with European Commission President Ursula von der Leyen recently suggesting that Russia’s LNG could be replaced with imports from the US. Germany, once Europe's largest importer of Russian gas, has been scrambling to replace pipeline supplies from Russia, particularly after Moscow reduced gas shipments to Germany and other European nations.

The letter from the economy ministry also stated that allowing this Russian shipment would undermine the very purpose of the LNG terminals, which were established to help Germany and the EU achieve independence from Russian energy. Despite bans from the US and UK on Russian LNG, the EU has continued to receive Russian gas, with around 20% of the bloc's LNG imports coming from Russia, according to commodity data firm Kpler.

Most of this Russian LNG has been directed to France, Spain, and Belgium, under long-term contracts that companies involved say they are unable to cancel unless a full EU-wide ban is implemented. However, since the invasion, Germany has not directly imported Russian LNG and the ministry's instruction aims to maintain this stance.

Germany's state energy group Sefe still holds a long-term contract with Russia’s Yamal export facility, but it has redirected nearly all its Russian LNG supplies to France, where the gas is re-gasified and then fed into the European pipeline system. Germany began receiving Russian gas via this route in October 2022.

DET has declined to comment on the ministry’s directive, and Sefe has yet to respond to inquiries. The German economy ministry, headed by Vice Chancellor Robert Habeck of the Green Party, which has been particularly critical of Russian actions, confirmed the country's ongoing commitment to excluding Russian gas from its energy mix.

Vessel tracking data has not yet confirmed any vessels heading for the Brunsbüttel terminal, though three vessels recently departed from Yamal, signalling a potential destination in Europe.

By Tamilla Hasanova