Page 109 - RusRPTMar21

9.1.1b Oil and gas sector news
The global oil market has partially recovered from the COVID-19 pandemic, while demand contracted by 8-9% as of the end of 2020, Deputy Prime Minister Alexander Novak said during a TV show aired on Rossiya 1 television channel on February 14.
Gazprom reported that it exported 34.5 bcm of natural gas to Europe and China in 2m21, up 33% y/y on March 1. Meanwhile, domestic gas deliveries rose 19.5% y/y. Based on preliminary data, the company's gas production reached 89.9 bcm in the first two months of the year (up 6% y/y). The robust export growth reported for the first two months of the year was mainly attributable to January, when total export volumes climbed 50% y/y, driven by the low-base effect and strong demand. Implied exports to Europe and China increased by a more modest 19% y/y in February to 15.1 bcm (+320% y/y to 0.8 bcm to China and +14% y/y to 14.3 bcm to Europe). We believe the slowdown in February was largely expected. Nevertheless, the 8.8 bcm increase in total gas export volumes to Europe and China in 2m21 should make a substantial positive contribution to the 1Q21 and full-year financials (representing 5% of last year's total exports of 179 bcm).
Nord Stream-2 pipe laying to be finished in April. Both lines of Nord Stream-2 should be completed by the end of April, per Interfax, referring to an updated report from the consortium to the Danish Maritime Agency. This
109 RUSSIA Country Report March 2021 www.intellinews.com