By Pietro Lombardi MADRID, Feb 25 (Reuters) - Spain's Naturgy has 10.95 billion euros ($13 billion) in Russian liquefied natural gas purchase commitments that may be affected from 2027 by a European
Naturgy flags €10.95bn Russian LNG deals at risk from looming EU ban
By Pietro Lombardi
EU Ban Impact on Naturgy’s LNG Contracts
MADRID, Feb 25 (Reuters) - Spain's Naturgy has 10.95 billion euros ($13 billion) 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.
Scale of Purchase Commitments
This amount represents less than a quarter of its total commitments for energy purchases, which it estimates at roughly 45.13 billion euros.
Terms of Yamal LNG Deal
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.
Share of Supply Affected
Last year, this contract represented roughly 16% of its total supply, in line with 2024.
A spokesperson for Naturgy declined to comment.
Talks and Force Majeure
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.
Garcia Cobaleda said the ban amounted to force majeure - an unforeseeable event that can release companies from a contract.
Mitigating Damages Obligations
That obliges the parties to "make an effort to mitigate the resulting damages," he said.
Compliance With Contract Volumes
The company has repeatedly said that, since the beginning of the war in Ukraine, it has only imported the volumes foreseen in the contract.
Exchange Rate Reference
($1 = 0.8475 euros)
(Reporting by Pietro Lombardi; Editing by David Latona, Alexandra Hudson)
