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Turkey cuts Russian gas supplies

further in March

TURKEY TURKEY steeply cut its imports of Russian gas competitive than Gazprom’s supplies, some of
in March, data published from Turkish energy which are indexed to oil prices with a time lag.
Gazprom has struggled regulator EMRA shows, continuing a trend that All of Russia’s supplies to Turkey are oil-in-
to defend its market began last year. dexed, making LNG a far more attractive option
share in Europe over Russia’s Gazprom sold 389.7mn cubic metres at present. The steep decline in oil prices that
the past year. of gas to Turkey in March, marking a 72% year- occurred in March should feed into Gazprom’s
on-year decline. It consequently lost its position supply contracts within the next six months,
as the country’s top supplier, with its share of the however, making its gas more competitive again.
Turkish market shrinking to 9.9%, from 32.6% Turkey’s overall gas imports fell by 8.3% y/y
a year earlier. in March to 3.94bn cubic metres. This decline
Replacing Russia was Azerbaijan, which was caused by general economic weakness, the
ramped up supplies by 19.6% to 924.3 mcm, impact on demand of urban lockdowns imposed
giving it a 19.6% share of the market. Turkey’s towards the end of the month, and a drop in gas-
LNG imports from the US soared fourfold to 370 fired power generation.
mcm. The country also doubled LNG shipments Besides Russian supplies, Turkey also reduced
from Qatar to 786.2 mcm, and unlike a year ago, imports from Algeria by 25.3% to 540 mcm,
also bought super-cooled gas from Cameroon from Iran by 33% to 558 mcm and from Nigeria
and Egypt, with supplies totalling 97 mcm and by 14.3% to 389.7 mcm. In Iran’s case, volumes
92.3 mcm respectively. were affected by a cross-border pipeline being
Gazprom has struggled to defend its market taken out of action in late March by an explo-
share in Europe over the past year from rival sion, which Turkish officials say was caused by
LNG suppliers. The collapse in global LNG Kurdish PKK terrorists. Iran has complained to
spot prices has in some cases made LNG more Turkey about its failure to repair the pipeline. ™

P14 www. NEWSBASE .com Week 22 04•June•2020