Surging Russian LNG Exports Highlight Role of the U.S.

Prior to 2022, Russia was the primary supplier of Europe’s liquified natural gas (LNG)–contributing around 35% through pipelines. However, two key routes have been severed since the war in Ukraine and the 2022 Nord Stream pipeline explosion.

In response, European countries have pivoted away from Russian LNG imports and are looking for alternatives. As Europe struggles with energy insecurity and reliance on Russian LNG, America remains a crucial asset for geopolitical stability and economic resilience.

In 2024, European imports of Russian LNG surged despite sanctions and diversification attempts. Russia is the second-largest LNG supplier after America, with France and Spain increasing their purchasing power. French imports of Russian LNG stand at a record high. The reduction in pipeline gas flows from Russia compelled European nations to turn to LNG to meet their energy needs. However, the reliance on Russian LNG remains due to insufficient alternatives to offset supply gaps.

The collapse of the Ukraine gas transit agreement exacerbates the situation. This deal previously enabled the flow of Russian gas to Europe through Ukraine. However, President Vladimir Putin recently stated that the contract will not be renewed after 2024. The discontinuation of this pipeline route will force European countries to increase their reliance on global suppliers for LNG.

The U.S. plays a critical role as the world’s leading LNG exporter. Many European leaders, such as European Commission President Ursula von der Leyen, have voiced their support for increasing U.S. LNG imports to reduce dependency on Russian energy. The pause on LNG permits weakens the U.S.’s ability to meet global demand and allows other countries, such as Russia and Qatar, to fill the gap.  Further, delaying permits gives mixed signals to allies relying on American energy. The U.S. must strengthen its LNG export capacity to support allies, curb Russian influence, and ensure energy security for a more stable future.