Spain to End Russian Gas Imports Amid EU Restrictions
Spain plans to cease importing Russian liquefied natural gas (LNG) from January 1, 2027, despite existing long-term supply contracts held by Spanish companies. Foreign Minister José Manuel Albares said Madrid intends to comply with the European Union's restrictions on Russian LNG imports.
The existing contracts are long-term agreements that cannot be terminated immediately, according to Albares. He noted that these contracts often remain in place for decades and can't be resolved at the last minute.
Spain has one of the largest LNG storage and regasification capacities in Europe, which could allow the country to support other European states by helping secure gas supplies from alternative reliable partners, including the United States. This comes as Hungary aims to ensure its gas supplies without Russian gas by October 2027, according to Hungarian Minister of Economy and Energy Istvan Kapitany.
Europe's natural gas storage facilities are currently 61.6% full compared with 74% during the same period last year, leading to a rise in natural gas prices amid low storage levels and supply disruptions. The price of natural gas at the Netherlands' TTF hub has reached €68.36 per megawatt-hour, up by as much as 5%.