Gasum Halts All LNG Purchases from Russia Due to EU Sanctions

Gasum Halts All LNG Purchases from Russia Due to EU Sanctions

(IN BRIEF) Gasum, a leading Nordic energy company, has ceased all LNG purchases from Russia following the EU’s 14th sanctions package, which prohibits the import of Russian LNG through EU terminals not connected to the EU gas network. Effective from July 26, 2024, this move adheres to the sanctions that came into force. Despite a long-term take-or-pay contract with Gazprom Export, the sanctions create a force majeure situation, preventing further Russian LNG imports. Gasum has ensured continued LNG availability for its customers by sourcing from other global suppliers, including a long-term agreement with Norway’s Risavika liquefaction plant and Central European terminals. Gasum also ended its pipeline natural gas contract with Gazprom Export in May 2023.

(PRESS RELEASE) ESPOO, 26-Jul-2024 — /EuropaWire/ — Gasum, a leading Nordic energy company, has officially stopped all liquefied natural gas (LNG) imports from Russia in compliance with the European Union’s latest sanctions. The sanctions, issued on June 24, 2024, by the Council of the European Union, prohibit the purchase or import of LNG originating from Russia through EU terminals that are not connected to the EU gas network. This ban became effective on July 26, 2024.

The 14th sanctions package, approved by the EU Council, includes a specific prohibition against the purchase or import of Russian LNG through off-grid EU terminals. Gasum, adhering to these sanctions, has ceased all LNG purchases from Russia.

Gasum previously held a long-term LNG supply contract with Gazprom Export, a Russian gas company. This contract, established before 2022, was a take-or-pay agreement, obligating Gasum to pay for a specified amount of gas annually, regardless of actual collection. While the EU sanctions do not permit Gasum to terminate this agreement, they do establish a force majeure situation regarding the purchase or import of Russian LNG to off-grid terminals.

Despite the cessation of Russian LNG imports, Gasum has ensured the availability of LNG for its customers. The company sources LNG from various global suppliers, including a long-term agreement with the Risavika liquefaction plant in Norway. Gasum also utilizes LNG terminals in Central Europe, with most of its LNG already coming from non-Russian sources prior to the sanctions.

In addition to LNG, Gasum had a long-term pipeline natural gas supply contract with Gazprom Export. However, no pipeline natural gas has been imported from Russia since May 2022, and Gasum terminated this contract in May 2023.

The energy company Gasum is a Nordic gas sector and energy market expert that together with its partners, promotes development towards a carbon-neutral future.

Media Contact:

Olga Väisänen
Vice President, Communications and Sustainability, Gasum
+358 40 554 0578
olga.vaisanen@gasum.com

SOURCE: Gasum