Bilbao’s Russian LNG rebound tests Europe’s 2027 ban

Russian LNG is still gaining ground in Spain as the EU heads toward its 2027 cutoff, the Financial Times reports. Russia supplied 27.8% of Spain's gas in May, 58.5% more than in May 2025, according to grid operator Enagás, even as the bloc's full ban on Russian LNG contracts takes effect from 1 January. Algeria remains Spain's main source of gas through pipeline links, but Russian volumes are climbing back.

The rift is no longer just behind closed doors: Ivan Jimenez, who runs the Port of Bilbao, told the FT that Russian imports should be reduced — but warned that “you cannot do that from one day to another,” arguing that an abrupt cutoff risks leaving Europe overdependent on US cargoes. Spain's Energy Minister Sara Aagesen Muñoz pushed back, saying the ban should proceed as planned and describing the recent surge as “temporary,” linked to logistics and price volatility in a changing market.

Russian LNG had been retreating at Bilbao — then reversed. Russian shipments accounted for more than three-quarters of the port’s gas imports in 2024, before dropping to 48% in 2025 as the EU diversified toward US supply, which made up 49% of Bilbao's intake that year. Between January and May 2026, Russia's share climbed back to 59%, while the US fell to 40%. Jimenez noted that importers were likely rushing to bring in “as much as possible” before the ban, adding that Russian gas is typically cheaper than US supply.

The EU has already legislated the LNG exit: The bloc’s regulation sets a full prohibition on Russian LNG imports from the beginning of 2027, while the full pipeline-gas ban starts in autumn 2027. The rules require member states to verify gas origin before authorizing imports and to prepare national diversification plans that identify difficulties in replacing remaining Russian volumes.

An alternative exists, but on a different scale

Algeria is the most immediate backstop for Europe. Spain and Italy are both connected via Algerian pipelines — with a combined transport capacity of 43 bcm per year — and Algeria supplied around 20 bcm to Italy last year, roughly 30% of Italian consumption. Spain is looking to increase throughput on the Medgaz pipeline by around 10% given regional energy market disruptions.

US LNG has already reshaped Europe’s supply mix. US LNG rose from 6% of European gas imports in 2021 to 29%, making the US the bloc’s second-largest source of imported gas after Norway. Jimenez suspects Trump will press the EU to keep the Russian ban in place because it boosts US exports.

Norway’s contribution is a longer-term play. Three dormant North Sea fields — Albuskjell, Vest Ekofisk, and Tommeliten Gamma — are expected to restart production in 2028, with most of the gas heading to Germany.