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EurOil NEWS IN BRIEF EurOil
The EU becomes the world’s important for the rest of Europe, as it has normal level of 7-8mn cubic metres and
reached Gela in Sicily from the Libyan plant
by far the largest gas storage tanks in EU
biggest LNG importer in 2022 and supplies gas to many other European of Mellitah via the pipeline GreenStream.
The 500-km gas pipeline crosses the
countries, including Italy, which is the second-
The EU has become the world leader in LNG biggest gas importer after Germany. Mediterranean Sea to Italy.
imports, according to the end of 2022’s results, Russian LNG supplies have not been The agency indicated that a group of
as reported by Refinitiv on January 10. affected by the fallout from the war in demonstrators from the Libyan city of Zuwara
The European Union became the world’s Ukraine. Indeed, the Russian government had prevented employees from reaching the
largest buyer of liquefied natural gas (LNG), estimates it shipped 21 bcm of LNG last year Mellitah oil and gas processing plant last
ahead of China, Japan and South Korea, the to Europe – some of it via China swap deals week, protesting against a decision not to
consultant said. Against the background of that saw its demand for gas fall significantly recruit them to the oil complex.
a sharp reduction in the supply of Russian last year due to its economic problems – The Mellitah site is considered the
pipeline gas, EU countries increased LNG significantly up on the level in 2021. But main hub for exporting Libyan gas to
purchases by 58%, up to 101mn tonnes, Russia has lost some markets, including the Italy via GreenStream. Italy imported
equivalent to 137bn cubic metres of natural UK, whose government on January 1 ended nearly 2.5bn cubic metres of Libyan gas
gas, slightly less than the 155 bcm Russia all LNG imports from the country. through GreenStream in 2022, according to
delivered to the EU in 2021. The UK imported 3.12 bcm of Russian gas government estimates. About 60% of Libya’s
Earlier the International Energy Agency or 4% from total consumption of this kind of domestic gas production is destined for the
(IEA) reported that Russian sent slightly fuel last year. Imports of Russian gas declined domestic market, while the rest is exported to
more than 100 bcm of gas to the EU in 2022, dramatically after the start of the Russian “special Italy. Based on these data, total gas production
and after the explosions appeared to have military operation” in Ukraine. The UK consumes in Libya should amount to between 9-10 bcm
cause leaks in the two main Nord Stream gas about 75 bcm of gas on average per year. annually.
pipelines on September 26 last year, the total
piped gas deliveries to the EU are expected
to fall to between 50 bcm-60 bcm, almost Hungary’s gas consumption Big fall in Iranian gas supplies to
exclusively via Turkey and Ukraine.
The IEA recently reaffirmed its forecast plunges in October Turkey blamed on network fault by
that Europe will face a 30 bcm gas deficit this
year that could restart the energy crisis this Hungarian domestic gas consumption was Tehran
summer, after the EU ended 2022 with very 19,173 terrajoules (TJ) in October, the lowest
full storage tanks and low demand due to the monthly figure since 2008, due to mild Iranian natural gas supplies flowing to Turkey
warmth of the winter. weather and weaker demand as households via a cross-border pipeline are down 70%
The EU imported 24%, Japan 17%, China scaled back consumption after the energy since the start of the new year, with Iran
15% and South Korea 11% of total global subsidy scheme was revamped in the summer, having reported an network infrastructure
LNG deliveries, according to Refinitiv. The according to the monthly report by energy fault, Turkish state energy company Botas said
share of liquefied gas in Europe’s consumption regulator MEKH in a statement on January 7.
increased 1.75 times, from 20% to 35%, while National primary energy consumption The announcement comes ahead of
the share of Russian gas fell to a third of its was 79.91 petajoules (PJ), down 17 PJ y/y. expected peak winter demand for gas. Iran
previous level, from 40% to 15%. Consumption from renewable energy sources is a heavy user of gas for both homes and
Germany remains the largest market for increased by 0.34 PJ, while fossil energy industry. Analysts within Iran were discussing
natural gas in Europe and until recently had sources decreased by 17.07 PJ. the likelihood that it was short of gas to
Russia as its largest supplier, although this Energy imports rose 23.4% y/y to 77.97 export. In Alborz province, northern Iran,
position is now held by Norway, which has PJ, including a 150% rise in gas imports. Coal industry has been asked to work to a four-day
ramped up pipe gas supply to the country imports fell 3.3%, oil imports dropped 28%, week until late February in order to conserve
over recent months. Germany has rushed electricity imports were down 4.6%. gas supplies.
into operation five floating LNG (FLNG) The country’s primary energy production Botas added that it was monitoring the
terminals and is currently building its first in October was 37.94 PJ, up by 2.08 PJ from issue and that all necessary measures were
onshore terminal, which could come into the same period in 2021. being implemented so that natural gas usage
operation by this coming winter. When all Gross electricity generation was 3,110 would not be negatively affected. Additional
of Germany’s LNG terminals are operational Gwh, 2.3% higher than a year earlier. Total demand was being met by gas storage
they are expected to be able to meet a third of domestic electricity consumption was 3,794 facilities in Turkey, it said. TheTurkish energy
the country’s demand for gas, according to the Gwh, 7.1% lower than in the same period ministry, however, warned gas shortfalls could
German Economics Ministry. a year earlier. Hungary’s gas reserves stood potentially affect power plants and various
Dependent on Russian piped gas for at 85.2% of their full capacity at the end of industrial users.
decades, Germany was one of the few coastal October., reaching 5.44bcm, up 11% y/y, In January last year, rolling gas and power
EU countries that had ignored LNG until according to figures from MEKH. cuts were imposed on Turkish industry,
the war in Ukraine made its dependency on with Turkish officials citing reduced Iranian
Russian piped gas a glaring problem. gas flows. On that occasion, Iran explained
On December 17, the first of Germany’s Libyan gas flow to Italy resumes the restricted flows by pointing to required
FLNG terminals came online in the port of maintenance on energy infrastructure,
Wilhelmshaven. The floating terminal that at full capacity after few days’ but analysts questioned whether Tehran
will meet 6% of Germany’s gas demand, had enough gas matched with distribution
is supported by a floating Norwegian disruption capability to maintain exports. Others asked
regasification unit, and four more terminals if Ankara was struggling to pay its gas debt to
will be put in place this year – one more at Libya’s gas supplies to Italy resumed in full Iran given its depleted FX reserves.
Wilhelmshaven and three other facilities in capacity on Monday, January 9 after they were Even though Iran has the second-largest
the northern cities of Brunsbüttel, Stade and disrupted by the end of last week, according to gas reserves in the world after Russia, it has a
Lubmin. a report by Italian news agency Nova. relatively low production rate.
Meeting Germany’s demand for gas is The quantity of gas supplies resumed its

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