U.S. Surpasses Russia as Gas Supplier to EU

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The European Commission reported Friday it has made strides in achieving energy diversity, with the United States overtaking Russia as the European Union's (EU) second-largest natural gas supplier during first-quarter 2025. Norway was the largest supplier.

With a dense network of pipelines running west through the former Soviet republics, Russia had been the primary natural gas supplier to the EU. That changed when Russia invaded Ukraine in 2022, prompting a bevy of economic sanctions against Russia and a push to diversify trade routes.

At the same time, U.S. natural gas deliveries to the EU were ascending. Shipments of liquefied natural gas (LNG) to Europe avoid some of the geopolitical issues associated with pipelines, offering the U.S. substantial trade options.

The EC said Norway remains the top supplier of natural gas, accounting for 31% of total deliveries. The U.S. was close behind, with a 24% market share, followed by Russia with 14%.

Before the war in Ukraine, Russia delivered about 25% of the bloc's gas needs. Apart from sanctions, meanwhile, European leaders are mulling the fate of the Nord Stream gas artery through the Baltic Sea, which was the target of sabotage in late 2022. Nord Stream was a main network for Russia's gas deliveries.

Gas consumption in the EU during the first quarter was 4.2 trillion cubic feet, an 8% increase year-on-year. Imports satisfied about 60% of that demand, although that marked a 2% decline from the same period in 2024.

Piped gas, meanwhile, accounted for 55% of the total imports, with the rest coming from LNG. The U.S. is the world leader in LNG exports. The U.S. government reported LNG exports averaged 16.1 billion cubic feet per day over the seven-day period ending June 25.

A handful of supply agreements from newly-sanctioned LNG projects in the U.S. are with Asia, however. The Federal Energy Regulatory Commission recently cleared the Commonwealth LNG export in Louisiana. Commonwealth, a Kimmeridge (New York, New York) company, in May signed a 20-year sale and purchase agreement with an undisclosed Asian buyer. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from a detailed project report and plant profile.

For Europe, meanwhile, LNG imports during the first quarter were up 11% compared with the same period last year, with the U.S. accounting for 54% of those deliveries. Russia was second-largest LNG supplier, besting LNG powerhouse Qatar by around 67 billion cubic feet during the first quarter.

A special permit is necessary to deliver U.S. LNG to countries lacking a U.S. free-trade agreement. It was unclear how U.S. President Donald Trump's punitive trade policies would impact those deals.

Trump's trade policies have created headwinds for the global economy, undermining demand. While crude oil prices are suppressed, the same can't be said for natural gas. The European Commission said it saw a 71% increase year-on-year in natural gas prices, driven by a dramatic decline in storage levels, lower renewable energy production and heightened geopolitical tensions.

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