Russia overtakes US as EU’s second-largest gas supplier

At the close of 2024, Russia emerged as the second-largest natural gas supplier to the European Union, surpassing the United States, with a total export of 54.45 billion cubic meters (bcm).

According to Bruegel's analysis, European countries imported a total of 297.9 bcm of gas in 2024. Of that, 54.45 bcm were sourced from Russia, marking a 21% increase from 2023, Caliber.Az reports via foreign media.

As a result, Russia's market share in the European gas sector grew from 14.2% to 18.3%. Norway remained the largest supplier, delivering 93.3 bcm, which accounted for 31.3% of the EU’s total gas imports. The U.S. had been the second-largest supplier in 2023 but saw its exports fall by almost 18% in 2024, dropping to 51.3 bcm.

LNG shipments from the U.S. and Trinidad and Tobago to the EU also dropped by 18%, totalling 54.6 bcm in 2024. Overall, Europe’s total LNG imports declined by 15% year-on-year to 113.6 bcm, marking the lowest level in three years.

Following the cessation of Russian gas transit through Ukraine on January 1, 2024, gas prices in Europe surged to their highest levels since November 2023. Moldova was the first to be impacted by the supply cut, with Transnistria halting almost all industrial activity. Hungary and Slovakia attempted to maintain Russian gas transit, but Ukraine refused to extend the agreement. The Russian Foreign Ministry warned that the decision would negatively affect European citizens' daily lives.

Bloomberg highlights that Europe's growing reliance on LNG to compensate for the halted supplies through Ukraine means any disruptions in LNG production could lead to significant price volatility.

By Tamilla Hasanova