Russian LNG Exports Surge in First Half of Year, But Decline Looms

Russia | July 2, 2024, Tuesday // 12:22|  views

Russian liquefied natural gas (LNG) exports increased by 2.7% in the first half of the year, reaching 16.79 million metric tons, according to Kommersant, as quoted by Reuters. However, future export volumes are expected to decline due to potential maintenance at the Sakhalin 2 facility.

The rise in LNG exports was driven by a 6.3% increase in shipments to Turkey and Europe, primarily France, totaling 9.7 million tons. This information was based on ship tracking data from the company Kpler.

Nevertheless, the Sakhalin 2 LNG plant has ceased exporting since June 20, possibly due to maintenance work. Sakhalin Energy, operated by Gazprom, controls 77.5% of the plant, with Japanese companies Mitsui and Mitsubishi holding 12.5% and 10% shares, respectively. The project operator did not respond to Reuters' request for comment, but annual maintenance typically occurs during the summer.

In June, Russian LNG exports fell by 3.7% year-on-year to 2.3 million tons. Of this, 1.44 million tons were sent to Europe, 680,000 tons to Asia, and 220,000 tons were not designated to a specific destination.

France emerged as the main destination for Russian LNG in the first half of the year, receiving 3.2 million tons, an 86.8% increase from the same period last year.

The European Union recently adopted new sanctions against Russia, including a ban on LNG transshipment outside EU ports. Analysts suggest these restrictions may lead to increased direct Russian LNG exports to Europe, which do not require transshipment, unlike LNG supplies to Asia via western routes.

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Tags: Russian, LNG, exports


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