Germany’s SEFE May Divert Contentious Russian LNG to Europe (1)

German state-owned energy group SEFE pledged to keep a natural gas supply contract with Russia, further stirring a contentious issue in Europe’s efforts to reduce its energy dependence on Moscow.

The dilemma is set to worsen as rising transportation costs mean shipments of Russian liquefied natural gas from Yamal to key client GAIL India Ltd. may end up in Europe. SEFE, or Securing Energy For Europe GmbH, could supply GAIL from other sources in its portfolio if it’s cheaper to keep Yamal supplies on the continent, according to Egbert Laege, chief executive officer of the company.

“This is a ...