Naturgy warns that EU ban could affect $13 billion of Russian LNG purchases by Naturgy

Spain's Naturgy, according to its annual report, has a total of 10.95 billion euros ($13.25 billion) in Russian liquefied gas purchase commitments that could be affected by the European Union's ban on Russian LNG as early as 2027.

This represents less than one quarter of the total amount it has committed to energy purchases.

According to the report, in 2013 the Spanish power utility entered into a contract with Yamal LNG to import LNG from Russia. The contract included take-or pay clauses that would cover 38 terawatt hours?per annum through 2041.

This contract represented roughly 16% of the total supply in 2024.

Naturgy's spokesperson declined to comment.

Manuel Garcia Cobaleda, Naturgy’s general counsel, said last week that the company would hold discussions soon with Yamal LNG in order to declare "force majeure", on their long-term contract, due to EU measures.

Garcia Cobaleda stated that the?ban?amounted force majeure, an unforeseeable event which can release companies from contracts.

He said that this obliges parties to "make an effort to minimize the damages resulting from the accident."

The company has repeatedly stated that it only imported the volume specified in the contract since the beginning of the 'war in Ukraine.

(source: Reuters)