Some Russian Yamal LNG to SEFE Could Stay in Europe

Germany’s SEFE may keep a natural gas supply contract with Russia as rising transportation costs mean the shipments of Yamal LNG to India’s GAIL may end up in Europe.

• It could be cheaper to keep Yamal supplies on the continent and supply GAIL from other sources in its portfolio, according to CEO Egbert Laege.
• “This is a contract that’s part of our portfolio and we are a state company so we have to manage it in an economical way,” Laege said. “If there are economic efficiencies to be gained to supply the Indian demand through sources in Asia or the Middle East, then I guess that’s our obligation to do so in order to save transportation cost, which then would mean that some of the volumes might stay in Europe.”
• Lawmakers in Germany have urged the company to stop the trading of Russian LNG but Germany and the EU haven’t banned the LNG imports.
• SEFE has access to Yamal LNG through 2040, beyond the contract’s end, Laege said. “There are currently no plans to get rid of it.”