EU Ban on Russia LNG Transshipments Could Boost Spain Arrivals

EU sanctions that prohibited transshipment of Russian LNG at European ports could lead to increased volumes arriving in Europe, according to Montel sources.

• The ban could result in more Russian LNG remaining in Spain, where there is significant spare import capacity and demand, said Ignacio Urbasos at the Elcano Institute think tank.
• Spain received 6.7bcm of Russian LNG last year, despite the EU’s efforts to cut supplies from the country.
• Spain, which holds 44% of the EU tank storage capacity, showed a regasification utilisation ratio of only 36% in 2023 and 29% so far in 2024, according to TSO data.
• The country was the main re-exporter of LNG from the EU in 2023 headed to destinations such as Morocco, Italy, the Netherlands, Belgium and Brazil, according to Kpler.
• The ban will most likely lead to a halt to all re-exports of LNG, a source said. “Until it is clear what conditions need to be met on reloading, I think many agents will avoid them.”
• The TSO would need the ability to certify the origin of the LNG. The TVB virtual tank system enables participants to trade LNG supply at any of the six plants with a single contract.