Gas Supply Challenges in Europe and the UK

Europe's reliance on liquefied natural gas (LNG) has seen Russia surpass Qatar as its second largest supplier. In 2024, Europe imported 49.5 billion cubic meters of Russian gas through pipelines and 24.2 billion cubic meters by ship. This increased the EU's Russian LNG imports by 14% to 7.32 billion euros. Despite a looming ban on Russian LNG transshipment to non-EU countries in 2025, companies are capitalizing on the cheaper Russian gas.

Meanwhile, the UK faces challenges with its gas reserves. Centrica warns of alarmingly low reserves as the transit contract for Russian gas via Ukraine expired. Britain's dependence on LNG imports puts it in competition with Asia and Europe. Although reserves are 26% lower than the previous year, Prime Minister Keir Starmer assures that the UK's diverse energy system will meet winter demands. Azerbaijan, leveraging its gas resources for international recognition, plans to double its EU gas exports by 2027, highlighting the geopolitical shifts in energy supply.