Novatek operates a dedicated storage tank at the port. It leases the facility as part of a 20-year transshipment agreement with Fluxys LNG NV/SA. Fluxys did not respond to inquiries if it aimed to alter or exit from its contract with Novatek. 

Finding alternative supply

Experts have long argued that the question if the EU can afford to step away from Russian LNG will primarily be one of supply security. Do other LNG suppliers, namely the United States, have sufficient spare capacity to make up the shortfall. 

Additional supply could come from Qatar, which is looking for buyers following massive expansion of its LNG production. Norwegian officials, on the other hand, have repeatedly indicated that the country will not be able to further increase supply of LNG or pipeline gas to Europe. 

Is Russian LNG no longer needed

With rapidly falling gas prices across the EU, discussions of a possible oversupply of LNG have surfaced. Some member states including Germany, which raced to open its first LNG terminal in record time and envisioned plans for a total of six hubs, will be scaling back efforts by almost half. 

Analysts, however, warn of potential overconfidence by the EU “in curbing Russian LNG imports,” TradeWindNews, an industry publication, reported last week. Russia’s role in the global LNG sector remains significant with Novatek’s Arctic facility accounting for around 5-6 percent of the global 380m ton trade. Additional production capacity will come online this year and in 2024.