Page 101 - RusRPTOct21

9.1.1b Oil and gas sector news
Gas prices went over $1,000/mcm as Russian flows slowed in September.
European gas prices exceeded $1,000/mcm on September 28. The move followed news of a sharp, c50% cut in Russian gas flows via the Yamal-Europe pipeline (Interfax). Slowdown maye temporary,but high prices are not. Gazprom explained that the slowdown is temporary, and was done to meet a request of a particular client. This information helped take ait of heat out of the market: Spot prices at one point exceeded $30/mcf ($1,050/mcm),but settling back to $28/mcf ($990/mcm) by the close of the day. Despite the modest retreat, prices were up for the day, and futures prices for November and December delivery remained over the $1,000/mcm mark. A slowing in flows along one pipeline caused gas prices in Europe to hit yet another all-time high. The European gas market remains undersupplied, and won’t materially improve before spring after an unusually warm winter.
Russia plans to increase liquified natural gas (LNG) production to the level of 140 mln tonnes per year by 2035, President Vladimir Putin said at a plenary session of the Russian-Kazakh transregional cooperation forum that is taking place in an online format on September 30.
OPEC released its latest monthly market report in mid-September in which they made some upward revisions to their demand forecasts for
101 RUSSIA Country Report October 2021 www.intellinews.com