Company: DLNG
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001104659-25-033744
Chunk: 91

Company: Dynagas LNG Partners LP
Filing Date: 2025-04-10
Form: 20-F
Item: Item 3
Chunk 91
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2023, Russian LNG exports increased 8.7% compared to the previous year in 2024 despite prolonged scrutiny and Europe’s plans to shun Russian LNG. In fact, Russian LNG exports were supported by increased supply to Europe in 2024, with Belgium, France and Spain remaining the largest markets for Russian LNG.

The EU sanctions adopted against Russia so far have not imposed a direct ban on Russian LNG imports. However, the EU and US technology sanctions have started to affect Russia’s LNG expansion plans. Arctic LNG T2 (6.6 mtpa) has been halted despite loading a few cargoes in early 2024. Meanwhile, planned capacity at Murmansk LNG (20 mtpa) and Arctic LNG T3 stands stalled amid growing stringency on Russia’s expansionary plans. With the EU’s ban on Russian trans-shipments, more direct LNG shipments to Europe could be recorded in the absence of any policy measure to reduce dependency on Russian LNG. Moreover, the ban on Russian trans-shipment, effective March 2025, could dent Russian LNG trade from the Arctic as about 20% of Novatek’s Yamal LNG passes through the EU before being re-exported, mainly to Asia. The EU sanctions adopted against Russia so far have not imposed a direct ban on Russian LNG imports.

LNG Demand

In tandem with the growth in the number of LNG suppliers, there has been a corresponding increase in the number of importers. In 2010, there were 34 countries importing LNG and by December 2024, the number increased to 45.

LNG imports by country between 2012 and 2024 are shown in the table below. Despite an increase in the number of importers, Japan, South Korea, and China provide the backbone of LNG trade, collectively accounting for 45% of the total LNG imports as of the end of 2023. While these countries are among the three largest LNG importers, their share in global LNG import has declined sharply in since 2022 (from 53% in 2021 to 45.6% in 2024) due to the increase in LNG import by the European countries and power generation from nuclear and renewable sources in Japan and South Korea. The fast-declining Russian gas supply to Europe forced the region towards LNG to counter the deficit.

China’s LNG imports surged in 2017 and surpassed South Korea’s to become the second biggest LNG importing nation. China became the largest LNG importer in 2023.