EU energy ministers discuss Ukraine energy crisis, Russian LNG

BRUSSELS, Oct 15 (Reuters) - EU energy ministers met in Luxembourg on Tuesday to discuss the bloc's rising Russian LNG imports, Ukraine's energy shortages ahead of winter and how to balance energy prices across member states, officials said. 

The EU agreed a 14th package of sanctions in June including a ban on transhipments of Russian gas as of March next year but stopped short of an outright ban. Since then, Belgium and the Netherlands have seen a sharp increase in imports. 

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In a letter on Monday, France and nine other countries asked the European Commission to propose stricter reporting obligations on Russian liquefied natural gas (LNG) for storage companies and suppliers. 

"Belgium will file and we will support an initiative to ban and track LNG imports from Russia more structurally," Kai Mykkanen, Finland's climate and environment minister, told reporters ahead of the meeting. 

Soon after Moscow began its invasion of Ukraine in February 2022, the EU announced an effort towards phasing out Russian fossil fuels "as soon as possible" without setting a date. 

"We have seen in Belgium a doubling of LNG volumes. These are probably destined for security of supply within Europe but we have difficulty implementing this (14th) package that's why we are calling for a tracking system," said Tinne van der Straeten, Belgium's energy minister. 

After the major Nord Stream pipeline was blown up in 2022, Russian LNG imports to the EU increased, while piped gas still flows via Ukraine and Turkey to central Europe.

"Some countries have internal issues clouding their judgement preventing a fast switch but it's been two and a half years so it's time to find an alternative," Krzysztof Bolesta, Poland's state energy minister, said.

The contract between Ukraine and Russia for gas flows via Ukraine is due to end in December. 

UKRAINE AHEAD OF WINTER

The International Energy Agency said Ukraine's winter electricity shortfall could reach six gigawatts (GW), exacerbated by the end of the Russian pipeline deal. 

The Commission will update countries on Tuesday on efforts to extend the Russia-Ukraine pipeline deal. Ukraine said it does not want to continue while Russia said it is willing. 

The ministers will also look at practical ways to help Ukraine through the winter. Commission President Ursula von der Leyen said Russia had knocked out the "power equivalent of the three Baltic states" and aims to restore about 15% of Ukraine's needs. 

Poland said it was in talks with Ukraine's transmission companies to raise exports while Lithuania has dismantled a power plant, which is being rebuilt in Ukraine.

The ministers will discuss former ECB bank governor Mario Draghi's competitiveness report, on which the incoming Commission is expected to draft its new Clean Industrial Deal.

Europe's gas and power prices are higher than in the United State and elsewhere, and they vary considerably across the bloc. In September, the Greek prime minister asked the EU to urgently respond to soaring power prices in central and eastern Europe. 

Draghi advocated a faster deployment of cheaper green energy solutions. However, aging power grids, red tape, and limited cross-border infrastructure have hampered efforts. 

"There is work to do on simplifying the authorisation of grid projects, mobilising funding and do more integrated planning," EU Energy Commissioner Kadri Simson told the meeting. 

(Reporting by Julia Payne; editing by David Evans)