Europe 'Turning Off the Tap on Russian Gas'

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)

---

Summary

Europe has agreed to permanently stop the import of Russian gas by 2027 following an agreement between most European Union (EU) Member States and the European Parliament. Liquefied natural gas imports will be phased out by the end of 2026, followed by pipeline gas by the end of September 2027.

---

Europe's Energy Independence Closer

Europe has taken its most decisive step yet to achieving energy independence from Russia by agreeing to permanently stop the import of Russian gas by 2027 and a phase-out of Russian oil. 

A provisional political agreement reached by the European Parliament and the Council sets a concrete timeline to end the dominance that Russian gas and oil has held on Europe's energy mix for many decades. The European Commission (EC) hailed the deal as a "historic decision" that would end Europe's dependence on "an unreliable supplier, which has repeatedly destabilized European energy markets, put at risk security of supply with energy blackmail and harmed the European economy." Member States will have to submit national plans outlining measures for diversifying their gas and oil supplies by 1 March 2026. Hungary and Slovakia, which rely heavily on Russian supplies, opposed the decision and may launch legal actions in protest. 

"Finally, and for good, we are turning off the tap on Russian gas," said Dan Jørgensen, commissioner for energy and housing. "Europe has chosen energy security and independence. We will never go back to our dangerous dependence on Russia. We will never go back to volatile supplies and market manipulation. We will never go back to energy blackmail and economic exposure. And we stand stronger than ever with Ukraine in its quest for freedom." 

The Success of REPowerEU 

Today, thanks to EU sanctions, imports of Russian gas (pipeline & LNG) have dropped significantly from a 45% share of overall EU imports in 2021 to an expected 12-13% for 2025. The volumes of imported Russian gas fell from 150 billion cubic meters (Bcm) in 2021 to 52 Bcm in 2024. All imports of Russian coal have been banned by sanctions while oil imports have shrunk from 27% at the beginning of 2022 to 3% last year. However, the commission noted that 35 Bcm of Russian gas made its way into the EU energy system last year, worth an estimated 10 billion euros in current prices. 

Commission President Ursula von der Leyen said: "Today, we enter the era of Europe's full energy independence from Russia. REPowerEU has delivered. It shielded us from the worst energy crisis in decades, and it helped us to transition from Russian fossil fuels at record speed. Today, we are stopping these imports permanently. By depleting Putin's war chest, we stand in solidarity with Ukraine and set our sights on new energy partnerships and opportunities for the sector." 

How it Breaks Down

• For short-term supply contracts concluded before 17 June 2025, the prohibition of Russian gas imports will apply from 25 April 2026 for LNG and 17 June 2026 for pipeline gas.
• For long-term contracts for LNG imports concluded before 17 June 2025, the prohibition will apply from 1 January 2027, in line with the 19th sanctions package.
• Pipeline gas imports under long-term contracts will only be allowed until 30 September 2027. In the event Member States face difficulties to fill the required storage levels, the import ban for pipelines would only apply as of 1 November 2027.

Growing Role for LNG

With sanctions on Russian supplies, imports of liquefied natural gas (LNG) have spiked in Europe in recent years, along with a sharp increase in the number of LNG projects underway or planned. Since the beginning of 2022, Europe's LNG regasification capacity has increased by 32% to almost 339 Bcm, thanks largely to the installation of 11 floating storage regasification units (FSRUs) - 10 of them in the EU, according to data cited by the Institute for Energy Economics and Financial Analysis (IEEFA). They have added 62.3 Bcm of new capacity, while expansions at existing terminals accounted for another 20.7 Bcm. Industrial Info is tracking 119 LNG-related projects in Europe worth almost US$11 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. 

Key Takeaways

• Europe has agreed to permanently stop the import of Russian gas by 2027.
• Imports of Russian gas (pipeline & LNG) have dropped from a 45% share of overall EU imports in 2021 to roughly 13% for 2025.
• Industrial Info is tracking 119 LNG-related projects in Europe worth almost US$11 billion.

---

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).