FX.co ★ Russian LNG flows to Europe hit record high

According to Kpler analysts, Russian liquefied natural gas exports to Europe reached an all-time high of 1.75 million tons in November. This topped the previous record of 1.737 million tons set in December 2022.

Last month, LNG supplies from Russia rose by 9.3% year-on-year to 2.914 million tons. The largest volumes were exported to France (6 shipments from Novatek's Yamal LNG plant) and Belgium (10 shipments from Novatek’s Cryogas-Vysotsk LNG plant). The redirection of Russian supplies was due to the increased appeal of the European market compared to the Asian one.

Japan and South Korea were also among major buyers of Russian LNG. In November, they reached their full potential under long-term contracts with Gazprom's Sakhalin-2. As a result, supplies to Japan increased by 22% year-on-year to 0.64 million tons, and to South Korea — by 50% to 0.28 million tons. November saw strong growth in LNG imports to China from Russia, Kpler estimated.

Between January and November 2023, Russian gas shipments totaled 29.12 million tons, notching a 2.5% decrease from 2022. During the reporting period, the country exported 14.78 million tons of LNG to Asian countries and 18.8 million tons to Europe.

European countries are increasingly dependent on LNG imports as they have to replace the pipeline gas previously supplied by Gazprom. At the same time, most exporters prefer short logistics chains. "European customers have taken exports from the relatively close countries to the highest level. Gas supplies from the United States are growing every month, <...> and Russia has reached historical highs," Kpler said. According to estimates, Russia’s LNG exports decreased slightly to 2.98 million tons in November compared to the previous month. As a result, November gas supplies from Russia amounted to nearly 35 million tons per year, although final year-end figures would be 2.5-3 million tons lower due to summer repairs, the analytics firm added.