<h6><strong>Julio García/Eduardo González</strong></h6> <h4><strong>In 2024, Russia was the origin of 21.2 percent of the liquefied natural gas (LNG) consumed in Spain, but our country also received this product from 13 other countries, which allows it to have “one of the most diversified supplies in the world,” according to the latest data from Enagás, coinciding with the end of the supply of Russian gas to the countries of the European Union after the expiration of the five-year agreement between Ukraine and Russia.</strong></h4> The 2019 agreement between the two countries at war allowed Moscow's liquefied natural gas (LNG) exports to the continent to transit through Ukraine before being diverted to their final destination. This deal was highly lucrative for both countries, paying billions to the Kremlin in revenue and Kyiv in transit fees. Ukraine’s gas transit operator has reported that Russia has not designated any gas flows through Ukrainian pipelines by January 1. The decision was made after Ukrainian President Volodymyr Zelensky announced that he had no plans to renew the deal, aiming to move Europe away from Russia and not allowing the Kremlin to “earn additional billions” from Ukrainian blood. The closure of Russia’s oldest gas route to Europe ends a decade of turbulent relations with the continent, which began in 2014 with the annexation of Ukraine’s Crimean peninsula. Russia has been transporting gas to Europe through Ukraine since 1991. At its peak, Moscow consolidated around 35% of the European gas market. <h5><strong>EU and energy</strong></h5> The EU has stepped up its efforts to reduce its dependence on Russian energy since its invasion of Ukraine in February 2022. Figures released by Brussels indicate that Russian pipeline gas made up around 8% of the bloc’s gas imports in 2023 (total EU imports of Russian gas would be around 15% that year, combining pipeline and liquefied natural gas imports). In contrast, pipeline imports were more than 40% in 2021. The bloc looked to Qatar and the United States for alternative energy sources. The shift was evidently efficient, as Gazprom recorded a loss of $7 billion (€6.73 billion) for the first time in two and a half decades. Even though Brussels significantly reduced its imports of Russian gas, several eastern EU member states are still heavily dependent on it. Even though Brussels significantly reduced its imports of Russian gas, several eastern EU member states are still heavily dependent on it. Countries such as Austria and Slovakia still import a huge amount of Russian gas, amounting to approximately €5 billion in revenue for Moscow. Other European, non-EU countries are also expected to suffer. Moldova, once part of the Soviet Union, is projected to suffer severe losses. Despite the bloc’s preparation and efforts to replace Russian gas, Europe has been feeling the impact as energy costs have skyrocketed, affecting the continent’s industrial competitiveness compared to Western competition in the United States and Eastern competition in China. Many countries have experienced an economic slowdown as inflation rates have soared, further worsening the cost of living crisis. Ukraine will lose around €1 billion annually in transit fees, but a rather minor amount compared to the €5 billion Gazprom will lose in revenues thanks to that deal. The European Union's executive body, the European Commission, published plans in December to assist its member states and guide them on the path to fully replacing Russian gas. Brussels, in a report, laid out several contingencies to help affected countries. Some of the existing contingencies include meeting needs by supplying Greek, Turkish and Romanian gas via the trans-Balkan route. Norwegian gas is also an option that can be piped through Poland, while Germany can also assist in distributing gas through central Europe. The plan is logistically difficult as it requires building alternative solutions for systems that have been in place for decades. <h5><strong>The case of Spain</strong></h5> As far as Spain is concerned, Algeria remains the main supplier of natural gas that reaches our country via pipeline, a good part of which was transported until the end of 2021 through the Maghreb-Europe pipeline. However, in 2022, 10.43% of the gas came from Russia, an amount that increased in 2024 to reach 21.2%, according to the latest bulletin from Enagás (Empresa Nacional de Gas, a natural gas transportation company and Technical Manager of the Spanish Gas System), published in November. Spain (whose demand for natural gas for industrial consumption increased by 4.2% in 2024) received supplies from 14 different countries last year, which allows it to have “one of the most diversified supplies in the world” and contributes to “a broad diversification of supply and positioning Spain as a strategic entry point for liquefied natural gas (LNG) from Europe,” Enagás assured this Thursday through a press release. In addition, according to the company, Spain contributed to the security of supply to the rest of Europe by sending a total of 34.5 TWh of natural gas, both through interconnections and with reloading of liquefied natural gas (LNG) ships.” The loading operations complied with the fourteenth package of sanctions imposed by the European Union against Russia for its invasion of Ukraine, with Spain being the first EU country to define the detailed rules and procedures for monitoring, controlling and authorising ship loads carried out in the Spanish Gas System in order to ensure that the reloaded LNG does not come from Russia.”
