EU imports record Russian LNG volumes ahead of 2027 ban

European Union countries imported record volumes of liquefied natural gas from Russia's Yamal facility in the first half of 2026, EU data showed Monday, as the bloc's reliance on Russian energy persists before a ban takes effect next year.

"The record imports show European utilities are front-loading purchases of Russian LNG before the supply channel closes," said an analyst at Urgewald, the environmental NGO that tracks LNG cargo data. France and Belgium remained the top importers from the Yamal plant, with the Zeebrugge terminal in Belgium — which has dedicated storage for Yamal LNG — receiving the most cargoes, according to Urgewald.

The imports come as Europe's total LNG arrivals are projected to fall to 6.90 million tons in July, the lowest since September 2024 and down from 8.72 million tons a year earlier, Kpler data show. The drop reflects a shift in global supply flows, with Asia drawing a record 4.23 million tons of US LNG in July — about three times the 1.34 million tons shipped in February before the Iran conflict disrupted Middle East supplies. Europe's imports of US LNG have fallen to 3.94 million tons in July from a peak of 7.79 million in January.

The divergence leaves Europe's gas storage filling behind schedule, with a deficit of 158 terawatt hours by July 7 — about 22% wider than the 10-year seasonal average, data from energy analyst John Kemp show. With the 2027 ban on Russian LNG approaching and spot prices already rising to $18.00 per million British thermal units in the week to July 10 from $15.30 in mid-June, European utilities may need to bid up prices to secure alternative supplies, potentially competing with Asian buyers for US and Qatari cargoes.

Global LNG Flows Reshuffle as Iran Conflict Disrupts Supply

Asia's LNG imports are on track to hit 23.05 million tons in July, a six-month high, driven by China's recovery to 5.62 million tons — the most since January and 55% above April's 3.62 million tons, Kpler data show. The rebound follows a collapse in spot prices from a post-Iran strike peak of $25.30 per mmBtu in March to $15.30 by mid-June, before the collapse of the US-Iran ceasefire pushed prices back to $18.00. Japan and South Korea have replaced Qatari volumes with US cargoes, with Japan's US LNG imports reaching 940,000 tons in July — 15 times the 60,000 tons shipped in February.

The resumption of hostilities between the US and Iran, including Tehran's closure of the Strait of Hormuz to vessels and strikes on a Qatari LNG tanker, has removed about 20% of global LNG supply from the market. Qatar's LNG remains effectively unavailable, tightening global supply just as Europe faces the dual challenge of filling storage and preparing for the loss of Russian volumes.

The EU's ban on Russian LNG, adopted as part of the 14th sanctions package in June 2024, allows existing contracts to run until 2027. The record first-half imports suggest European buyers are maximizing deliveries while the window remains open, even as the bloc's broader energy strategy calls for diversifying away from Russian supplies.

This article is for informational purposes only and does not constitute investment advice.