LNG

Greece-based Dynagas will be allowed to keep shipping Russian LNG to third countries under the EU’s new sanctions package, in a 12-month exemption that caps volumes at 2025 levels.

Greece has warned EU sanctions against the transhipment of Russian LNG to third countries could surrender market share to non-European rivals, as EU envoys postponed talks on the bloc’s 21^st sanctions against Russia to July 23.

Spain’s Bilbao port chief has urged the European Union to delay its 2027 ban on Russian LNG, arguing the bloc needs “more resilience” and noting Russian cargoes are often cheaper than U.S. supplies.

The British government is anticipated to announce new sanctions today targeting Russia’s illicit shadow fleet for oil and LNG, following the interception of a sanctioned Russian oil tanker in the Channel on Sunday. The move could disrupt a segment of LNG trade that relied on opaque shipping and financing channels.

Britain has eased restrictions on Russian LNG shipping by issuing a temporary licence for cargoes from the Sakhalin-2 and Yamal terminals bound for third countries, as Whitehall responds to tighter gas markets and soaring energy prices. The carve-out runs until January 1, 2027, and only applies to contracts with a duration of one year or less.

Persistent disruptions to LNG flows through the Strait of Hormuz bolster Russia’s chances of getting the Power of Siberia II pipeline built. A 2032 startup would give Gazprom a new major outlet, as the EU’s 2027 ban on Russian LNG reshapes Moscow’s long-term export strategy.

Buyers in the EU have been snapping up all LNG from Russia’s Yamal terminal they can secure, just month before a full EU ban on Russian gas exports will take effect at the start of 2027.

EU member states spent more than €7.2 billion ($8.4 billion) on Yamal LNG last year – despite a full ban on LNG imports coming into force on January 1, 2027.  “Russia has no adequate alternative to the EU market,” Urgewalt analysts commented, noting more than three-quarters of all Yamal LNG exports currently go to Europe.

European wholesale gas prices fell below €30 per MWh on Monday, a level not seen since February 2024, as expectations for a Ukraine peace deal put bearish pressure on prices. The Dec-2025 TTF contract also slipped below this threshold amid hopes that the EU’s proposed ban on Russian pipeline gas could be softened.

Japan’s new Prime Minister, Sanae Takaichi, has rebuked demands from US President Donald Trump for an outright ban of Russian LNG, saying such a move would be “difficult.” Mitsui and Mitsubishi own stakes in the Sakhalin-2 project and Russian LNG currently cover some 9% of Japan’s total imports.