Page 4 - EurOil Week 44 2021

EurOil COMMENTARY EurOil

Gazprom faces more criticism for

exacerbating energy crisis after

halting flows via Poland

Gazprom’s transit contract via Poland expired last year, meaning it can send

as little gas as it wants to meet customer demand

EUROPE AS Europe grapples with unprecedented short- long-term contract for gas transit via Poland,
ages of natural gas, Russian gas flow was halted which required that it send a minimum amount
WHAT: on October 30 along one of the key routes that of gas via the pipeline, expired in May 2020, and
Gazprom has stopped supplies the continent. While Russia’s state- supplies were halted. But while European gas
sending gas via owned gas supplier Gazprom continues to insist demand back then was at an historic low amid
Yamal-Europe. that the requirements of its European customers coronavirus (COVID-19) restrictions, now it is
are being met, its critics say the company is with- more robust and supplies are short. The timing
WHY: holding supply to force the EU to allow Nord has lent strength to the narrative that Gazprom
Gazprom says it is Stream 2’s launch. is keeping back some supply – whether simply to
meeting customer Data released by pipeline operators shows drive up prices and earn more or to put pressure
needs, but the halt that eastward supplies of Russian gas via the on EU regulators to give Nord Stream 2 a green
has strengthened the Yamal-Europe pipeline that runs through Bela- light.
narrative that the rus and Poland were halted on October 30. Since
company is holding back then it has been flowing gas in reverse, delivering No extra transit
some supply. supplies to Poland and Belarus from neighbour- Meanwhile, Gazprom has repeatedly refrained
ing Germany. from booking any extra transit capacity via
WHAT NEXT: There is no official explanation for the Ukraine beyond the contractual 40 bcm per year,
Nord Stream 2 change in direction from either Gazprom, its which translates to 100 mcm per day.
certification could drag customers or operators. It is not the first time “There is no commercial justification for
into next year. there has been such an occurrence. Gazprom’s such behaviour. In fact, there can be no clearer

P4 www. NEWSBASE .com Week 44 04•November•2021