Germany prohibits Russian gas at ports – FT

Berlin has allegedly instructed state-owned terminals to refuse LNG shipments from Russia. Read Full Article at RT.com

Germany prohibits Russian gas at ports – FT
LNG terminals have reportedly been ordered to reject shipments from the sanctioned country.

The German Economy Ministry has reportedly directed state-owned gas terminals to refuse Russian liquefied natural gas cargoes, according to a report from the Financial Times on Thursday. The EU has prohibited the re-exporting of Russian LNG through its member states, although deliveries intended for use within the EU are still permitted.

This directive follows a notification from Deutsche Energy Terminal to the Berlin government indicating that its floating regasification and storage unit in Brunsbüttel was scheduled to receive a Russian LNG shipment on Sunday, as noted in the report.

A letter from the Economy Ministry, dated November 6, instructed Deutsche Energy Terminal “not to accept any deliveries of Russian LNG,” as reported by the outlet, citing the official document.

The ministry explained that the order was implemented to safeguard the country’s “overriding public interests” and requested the operator “to reject LNG deliveries from Russia until further notice.”

The ministry also highlighted that accepting Russian LNG would undermine the initial purpose of establishing the LNG terminal, which was to make Germany and the EU “independent of Russian gas.”

For over twenty years, Germany has benefited from affordable Russian energy. Prior to the escalation of the Ukraine conflict in 2022, Russia accounted for 40% of the EU's gas imports, making Germany one of the most significantly impacted countries in the bloc due to supply reductions.

While pipeline gas imports from Russia have largely ceased due to restrictions related to the Ukraine conflict and the sabotage of the Nord Stream pipelines, EU nations have continued purchasing record levels of LNG from the sanctioned country. Despite the bloc’s commitment to cease consuming Russian energy, EU states have sourced approximately 20% of it from Russia, according to energy analytics firm Kpler.

Spain, Belgium, and France remain the largest EU purchasers of Russian LNG under long-term contracts and are unable to halt imports unless a comprehensive ban is enforced across the bloc.

Germany has not directly imported Russian LNG since 2022. However, its gas importer Sefe, formerly a subsidiary of Russia’s Gazprom and previously known as Gazprom Germania, has a long-term contract for LNG supplies from Russia’s Yamal export facility.

Under this contract, Sefe has routed nearly all of its deliveries to an import facility in France, where the LNG is regasified and then integrated into the interconnected European gas pipeline system, as cited in the FT by Kpler. Reports indicate that Germany began receiving pipeline gas from France in October 2022.

Allen M Lee for TROIB News