On Thursday (12 March), European Union diplomats told Reuters that the European Commission will be guiding governments towards flexible applications of EU regulations on gas imports. The Commission plans to roll out specific guidance on how to navigate gas import uncertainty while complying with European Union law to phase out Russian gas imports by Wednesday (18 March). The shifting enforcement of European gas imports will likely benefit imports from Azerbaijan.
The EU phase-out of Russian gas imports, paired with the current crisis in Iran, presents substantial threats to Europe’s gas supply. Current disruptions to the transport of liquefied natural gas (LNG) and the increased likelihood of cargo diversions cause worry among EU officials about European gas supply and reserves. The European Commission’s guidance aims to stabilise Europe’s gas reserves while maintaining the policy to phase out Russian gas.
Current EU regulations require “prior authorisation” for shipments of pipeline gas or LNG, meaning companies must declare the source of the gas to European customs authorities before it can enter the EU.
Azerbaijan, which accounted for four percent of EU gas imports last year, will likely benefit the most if these regulations are relaxed. Currently, Azerbaijani gas is transported to EU states through Türkiye and the Southern Gas Corridor Pipeline to states including Italy and Greece.
The EU’s primary providers of gas, such as Norway and the U.S., will not be held to “prior authorisation” standards because they are assumed to be at less risk of funnelling Russian gas into EU imports.
Source: commonspace.eu with Reuters
