Page 11 - FSUOGM Week 27 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom ships record volumes

of gas to Europe in H1

RUSSIA RUSSIA’S Gazprom exported record volumes doing so,” the analyst said, noting that Gazprom
of gas to Europe during the first half of the year, might not trust GTSOU not to disrupt the capac-
The surge came despite despite recent claims in the press that the com- ity, causing it to violate its contractual supply
accusations that pany has been withholding supply to jack up obligations.
Gazprom is keeping prices. On June 28 Gazprom once again refused to
back some supply to Gazprom’s supplies to non-CIS states were book the 63.7 mcm per day of interruptible tran-
jack up prices. up 25.7% year on year at 99.9bn cubic metres, sit capacity that GTSOU offered in a tender for
the company said. This is largest amount of gas July. The company did not book any interrupti-
it has sent in a six-month period since the first ble capacity in May or June either.
half of 2018, when it delivered a record 101.2 The latest refusal comes despite the fact that
bcm. both Gazprom’s Yamal-Europe and Nord Stream
During the first six months of this year, sup- 2 will undergo maintenance this month. In
plies to Turkey more than tripled to 14.64 bcm. related news, the Novatek-led Yamal LNG con-
One of Turkey’s long-term contracts for gas from sortium reported on July 2 that this plant would
Azerbaijan recently expired and the two sides are be offline between August 1 and 19 so that sched-
yet to renew it. Gazprom’s supplies to Germany, uled maintenance work could take place.
its largest market in Europe, were up 43.4% at Meanwhile, European gas prices have con-
28.87 bcm. tinued to climb in recent days, hitting $450 per
European gas prices have surged recently, 1,000 cubic metres in the week ending July 2.
on the back of a summer heat wave, increased Analysts at BCS Global Markets said that
storage demand and tight supply. Despite record neither the growth in Gazprom’s shipments or
flows, the Financial Times reported in late June bullish prices were surprising.
that Gazprom was intentionally keeping back “Gazprom’s exports were heavily depressed in
some gas supply to drive up prices and put pres- H1 2020 by the combination of overly full stor-
sure on Europe to let Nord Stream 2 go ahead age, a warm winter and of course the COVID-19
However, Gazprom and some analysts have crisis, so some rebound was expected,” the ana-
presented a different explanation. Ukraine’s lysts said, adding that the 100 bcm volume was
GTSOU, they claim, has been offering inter- modestly above its forecast.
ruptible transit capacity on unfavourable terms. The Moscow-based brokerage has a full-year
As IHS Markit analyst Laurent Ruseckas noted projection of 196 bcm. “But with the European
recently, “interruptible capacity is usually market very tight, higher second-half exports are
offered when a pipeline operator cannot guar- more than possible,” the analysts said. “Mean-
antee capacity is available, and therefore it is sold while, European gas prices continue to react to
at a discount.” But GTSOU is instead charging record-low storage levels, a lack of LNG due to
Gazprom the same as for firm capacity on the high demand and prices in Asia, and in antici-
Russian border. pation of the loss of Nord Stream 1 shipments
“An inferior product at a premium price! for several days in July due to scheduled main-
And without any operational basis I can see for tenance.” ™

Week 27 07•July•2021 www. NEWSBASE .com P11