Page 7 - FSUOGM Week 20 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom slashes gas supply to

Europe by over quarter YTD

EUROPE RUSSIA’S Gazprom has slashed gas supplies told a press conference last week.
to Europe by more than a quarter this year, the The Yamal-Europe pipeline that pumps gas
Gazprom has cut gas company reported on May 16, despite a bump in to Germany via Poland has also shut down
supply to Poland and its production over the same period. after it too was sanctioned by Moscow. Fur-
Bulgaria. The state gas supplier’s exports to the thermore, shipments via one of the transit
so-called Far Abroad, referring to Europe plus routes through Ukraine were halted last week,
Turkey, minus countries of the former Soviet after Ukrainian grid operator GTSOU said it
Union, reached 55.9 bcm between January 1 and was no longer able to manage flow as Russian
May 15, down 26.5% year on year. troops had taken territory where key facilities
The slump comes after Gazprom cut off gas are located.
supply to Bulgaria and Poland at the end of April, While Bulgaria and Poland refused, a num-
after the two countries refused to comply with a ber of European gas buyers are said to have
Kremlin decree requiring that gas payments to opened bank accounts at Gazprombank in
the company be made in rubles rather than other compliance with Moscow’s wishes. Germany’s
currencies. The decree is aimed at propping up Uniper, for example, has said it is confident it
the ruble and shielding Gazprombank, which can comply without breaching sanctions, and
will receive and convert payments, from future Italian Prime Minister Mario Draghi last week
sanctions. also appeared to back such a move.
Gazprom has also continued withholding A notable exception is Finland’s Gasum,
gas supply from the spot market, instead mak- which said on May 17 it would take its dispute
ing deliveries only under its long-term contracts over ruble payments with Gazprom Export to
with buyers. arbitration proceedings.
Russia has also curbed gas supplies to Ger- Gasum said it would not comply with Russia’s
many after imposing sanctions on the for- demand, and therefore there was a risk that gas
mer subsidiaries of Gazprom registered in the supply would be halted. Finnish authorities have
country. Operational control of those units has begun preparing for a potential cut-off supply,
been seized by German authorities. Accord- which could be done in retaliation for the coun-
ing to Bloomberg, however, the move is largely try’s decision last month to apply to join NATO.
symbolic at this stage, with the cut in Russian The country gets 70-80% of its gas from Russia.
shipments only amounting to about 3% of the Production at Gazprom rose by 3.7% year on
country’s total imports. year in the January 1-May 15 period, reaching
“The situation is escalating to the point that 193.8 bcm. The company also said that exports
the use of energy as a weapon is becoming a real- to China via the Power of Siberia pipeline were
ity,” German Economy Minister Robert Habeck growing, without divulging details. ™

Week 20 18•May•2022 www. NEWSBASE .com P7