Naturgy, Spain’s leading natural gas utility, has launched emergency negotiations with international suppliers to replace approximately €2 billion worth of Russian gas contracts.
The move comes as the company seeks to navigate the deepening supply constraints within the European Union, aiming to prevent potential shortages for its customers.
The scramble for alternative volumes highlights the ongoing structural shift in Europe’s energy landscape.
With Russian flows curtailed, utilities are increasingly reliant on liquefied natural gas (LNG) and other non-Russian sources, often at a premium.
This realignment of supply chains is driving volatility in regional gas benchmarks and pressuring margins for distributors unable to pass on costs immediately.
Naturgy’s actions follow earlier warnings from the company about the risk of natural gas shortages in Europe this winter, citing the impact of newly imposed sanctions on Russia.