In March, the European Union (EU) signed a deal with the United States for new gas supplies totaling 15 BCM in 2022, according to Bloomberg agency. (Photo: Getty Images)
This is a major turning point in the global energy market. According to the International Energy Agency (IEA), US natural gas exports to Europe exceed those of Russia for the first time in history.
As can be seen from this chart, in June shipments of liquefied natural gas (LNG) from the United States to the European market – delivered by ship from the Gulf of Mexico – exceeded Russian gas shipments through the Gulf of Mexico through gas pipelines.
After invading Ukraine, the European Union imposed restrictions on Russian gas exports to its territory. (Source: International Energy Agency)
The tipping point occurred with deliveries of five billion cubic meters (trillion cubic meters or BCM) of natural gas.
This crossing of the volume curves is of course due to the invasion of Ukraine by the Russian army since February 24th.
Following this attack, Western, but particularly European, countries imposed several economic sanctions on Russia, beginning with a significant reduction in its natural gas supplies to Europe.
Since the invasion began, Russian gas exports there have fallen by half, according to the IEA. Meanwhile, LNG shipments from the United States to Europe increased slightly.
Europe wants to get rid of Russian natural gas
And they should continue to rise. In March, the European Union (EU) signed an agreement with the United States for new gas supplies totaling 15 BCM in 2022, according to data from the Bloomberg agency.
For its part, in March the European Commission (the executive body of the EU) announced that it wanted to cut European imports of Russian gas by two-thirds by 2022, in order to be completely free by 2030.
To put things in perspective, before invading Ukraine, Russia exported about 150 BCM of natural gas per year to Europe via pipelines, in addition to 14-18 BCM of LNG — for a grand total of 164-168 BCM per year.
To compensate for the continued decline in its exports to Europe, Russia plans to increase its natural gas sales in Asia, particularly in China, a country with high energy needs.