Naturgy warns $13 B in Russian LNG purchase commitments may be hit by EU ban
Spain's Naturgy has €10.95 B ($13 B) in Russian liquefied natural gas purchase commitments that may be affected from 2027 by a European Union ban on Russian LNG, its annual report showed.
This amount represents less than a quarter of its total commitments for energy purchases, which it estimates at roughly €45.13 B.
The Spanish power utility entered into a long-term contract with Yamal LNG in 2013 to import LNG from Russia, which includes take-or-pay clauses for 38 terawatt-hours per year through 2041, according to the report.
Last year, this contract represented roughly 16% of its total supply, in line with 2024.
Last week, Naturgy's general counsel Manuel Garcia Cobaleda said the company will hold talks soon with Yamal LNG, with a view to potentially declaring "force majeure" on their long-term supply contract due to the EU measures (learn more).
Garcia Cobaleda said the ban amounted to force majeure - an unforeseeable event that can release companies from a contract.
That obliges the parties to "make an effort to mitigate the resulting damages," he said.
The company has repeatedly said that, since the beginning of the war in Ukraine, it has only imported the volumes foreseen in the contract.
($1 = €0.8475)
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