The war in Ukraine and sanctions against Russia have radically altered Europe's energy map — Ivan Geliukh

The European natural gas market has undergone significant changes after 2022, according to a column by DTEK's top manager Ivan Geliukh published on Interfax.com.ua.

According to the expert, before Russia's full-scale invasion of Ukraine, approximately 35-45% of the EU's gas supply came through major pipelines, including Nord Stream and Ukrainian transit routes. However, due to sanctions and global efforts to reduce dependence on Russian energy, this share dropped to 15% of total imports by 2023. One of the factors is that many countries have intensified their efforts to increase production of energy from renewable sources, as Ivan Geliukh explained earlier. 

"Moreover, Europe has focused on liquefied natural gas (LNG) supplies. LNG now accounts for 43% of total imports. The primary LNG suppliers are the United States, Qatar, and Norway. European countries have also actively invested in building new terminals for gas storage and processing, significantly enhancing the region's energy security," the expert noted.

He believes these measures enabled EU countries to end the 2023 winter season with record-high reserves (45–50%), far exceeding the average levels of the past five years.

Ivan Geliukh also highlighted Ukraine's role in stabilizing the market. Notably, in the first quarter of 2024, over 160 energy companies from 32 countries stored gas in Ukraine's underground facilities. This helped mitigate the risk of shortages in Europe and avoided sharp price spikes.

"Despite the challenges Ukraine faced due to infrastructure damage caused by Russian attacks, its gas storage facilities continue to be used by international companies. This contributes to reducing natural gas price volatility in Europe and decreasing dependence on traditional suppliers," the expert emphasized.

It is worth noting that, in addition to seeking new sources of gas supply, Europe is also striving to reduce its dependence on this type of energy. As Ivan Geliukh mentioned in one of his columns, this is being achieved through the development of green electricity.