France's recent increase in Russian liquefied natural gas (LNG) imports underscores a complex reality.
Imports Remain Steady
Despite a vocal stance against Russia following the invasion of Ukraine, European countries, including France, are still reliant on Russian energy to meet their needs.
In the first half of 2024, France doubled its LNG imports from Russia, reaching 3.2 million tons, accounting for 40% of Europe's total Russian gas imports, according to El Economista.
This situation highlights a broader European trend: despite efforts to reduce dependency on Russian energy, the continent's LNG imports from Russia have remained steady at around 1.5 million tons per month.
Meanwhile, U.S. LNG exports to Europe have sharply declined, from 5 million tons in March to 1.6 million tons recently, nearly matching the volume imported from Russia. The market dynamics are driven by the higher premiums offered by Asian markets for American gas, making it more lucrative for U.S. exporters to pivot away from Europe.
Prioritizing Energy Security
The energy price in Europe has remained relatively stable despite these shifts, with gas trading around 33 euros per megawatt-hour. However, Europe's competitiveness as a buyer is waning, not just due to Asia's higher bids but also because of new players like Egypt entering the market.
The recent disruptions, such as the shutdown of the Freeport terminal in Texas due to Hurricane Beryl, have further strained Europe's energy supply.
France's increased purchases, while legally compliant with existing EU regulations, come amid a backdrop of potential new sanctions targeting Russian LNG. T
he French government appears to be prioritizing energy security, even as previous contracts, like the one with Turkey's Botas for 1.2 million tons of LNG annually, expire. This strategic shift reflects the urgent need to secure energy supplies in a volatile global market.
