Russian gas used to be more important, but it continues to reach Sines

Russia continues to be a significant supplier of natural gas entering Portugal. According to statistics from the Directorate-General for Energy and Geology (DGEG), two shipments of liquefied natural gas (LNG) from Russia totaling 185,500 cubic meters arrived in July. This amount represents less than 10% of the gas imported this year— about 7% —however, Russia is the third-largest source of LNG entering the Sines liquefied gas terminal.

This year, two shipments arrived in Sines from Russia, the second in May, when authorization from the national authorities was already required.

Until July, Portugal's main supplier was Nigeria, with more than 50%, followed by the United States with 30%, Spain (via pipeline) and Russia.

Russian gas supplied 12% of national imports in 2021, but with the outbreak of the war in Ukraine, this source's share fell to less than 10%, fluctuating between 5% in 2022 (the first year of the conflict) and 7.5% the following year. Conversely, Portugal increased its purchases from the United States, which is now the second-largest supplier after Nigeria.

The European Union wants to bring forward the planned ban on the purchase of Russian LNG to come into effect by January 1, 2027, as part of its 19th package of sanctions against Russia. The measure faces opposition from countries close to Moscow, notably Slovakia and Hungary, which have always relied on Russian gas.

Russian gas entering Portugal has been linked to long-term contracts with a Spanish supplier, Naturgy, which has consistently purchased from Russia due to the war in Ukraine. Some of this gas is used to supply the Spanish company's customers in Portugal. Naturgy is the second-largest gas supplier in the national market, with around 20%, surpassed only by Galp. This share is held primarily by large industrial customers.

Naturgy has a contract to purchase gas from Siberia that expires only in 2038, reports El Pais. This gas initially arrived via a pipeline managed by the state-owned company Gazprom, but now arrives by sea and is partnered with a private Russian consortium, Yamal LNG. Spain appears to be one of the European countries that has purchased the most LNG from Russia since the outbreak of the war in Ukraine.

In recent years, the Sines terminal has established itself as a major gateway to Portugal, thanks to Galp's long-term contract with Nigeria, but also through more recent contracts with American suppliers that supply Galp and EDP.