Storage and transshipment of Russian gas in port of Zeebrugge under scrutiny
A 180,000 cubic metre gas reservoir in the port of Zeebrugge has been of strategic importance for Russian gas transports to Asia. The reservoir was built in 2019 by Belgian gas grid company Fluxys in function of a 20-year contract with Russian gas producer Yamal LNG. In light of current geopolitical developments, the Institute for Energy Economics and Financial Analysis (IEEFA) and Flemish media are questioning the tenability of this contract. Fluxys is a private company whose main shareholders are the Belgian municipalities.
Fluxys' gas terminal at the port of Flemish coastal town Zeebrugge serves as a transshipment site for liquefied natural gas (LNG) coming from Russian gas fields in northern Siberia. Fluxys provides year-round storage and transshipment capacity for LNG originating from the Russian peninsula Yamal. This enables Yamal LNG to transfer LNG from icebreakers to normal LNG tankers in Zeebrugge. According to the IEEFA, 89% percent of the total Yamal LNG exports that were transshipped at Zeebrugge in 2021 were sent to non-European markets.
On Wednesday, Flemish newspaper De Standaard asked whether the contract between Fluxys and Yamal LPG is still tenable, given the Russian invasion of Ukraine and the resulting sanctions imposed on Russia. "In the current circumstances, where no European sanctions have been imposed for receiving Russian gas, Fluxys, as the facilitator of an essential service, is obliged to respect the contractual agreements with all customers, including Russian customers", Fluxys spokesperson Laurent Remy reacted. "It goes without saying that as soon as any sanctions are implemented with regard to receiving LNG from Russian tankers, Fluxys will comply with them and cooperate with the authorities", Remy added.
Whether the European Union should impose energy sanctions on Russia was a key point of discussion at the EU summit this Thursday. There does appear to be consensus on the need to reduce Europe's energy dependence on Russia. In this context, United States President Joe Biden and European Commission President Ursula von der Leyen announced on Friday morning that the United States will supply at least another 15 billion cubic metres of LNG to the European Union in the course of this year. The port of Zeebrugge is one of the main entry points for LNG supplies in Northwest Europe. Fluxys spokesperson Laurent Remy says the announcement by Biden and von der Leyen has no impact on their position regarding the storage and transshipment of Russian LNG gas in Zeebrugge.
© BELGA PHOTO KURT DESPLENTER