Page 9 - FSUOGM Week 42 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Gazprom supplies to Europe see further

decline in October

RUSSIA GAZPROM’S gas supplies to countries beyond the risk that deliveries could be shut down
the former Soviet Union saw a 41.1% decline altogether.
Supply could fall further in the first nine and a half months of this year, This leaves only TurkStream, where Russia
if a dispute between amid ongoing cuts to customers in Europe. and Turkey have entered talks to potentially
Russia and Ukraine Gas deliveries to the so-called far abroad double the pipeline’s capacity to 63 bcm per
over transit payments amounted to 89.3bn cubic metres of gas in year. But this project, whenever it is realised,
heats up. the year up to October 14. Gazprom said it will not be enough to offset the loss of the 55
“delivers gas in compliance with confirmed bcm per year Nord Stream 1 and 33 bcm per
requests.” However, the company has been year Yamal-Europe supply routes.
continually reducing flow to its European cus- In its update on October 17, Gazprom also
tomers in the months since Russia launched its noted that domestic gas supplies in Russia were
invasion of Ukraine – first by cutting off buyers down 4.1% in the January 1-October 15 period,
that refused to comply with a Kremlin decree while gas exports to China via the Power of
on paying in rubles, and second by reducing Siberia pipeline continue to grow. Russian
flow via the Nord Stream 1 pipeline. Deputy Prime Minister Alexander Novak esti-
Nord Stream 1 is now out of action com- mated last week that supplies to China would
pletely, following major leaks that occurred rise to 22 bcm in 2023, from 15 bcm in 2022,
at the pipeline in late September, which are and reach the pipeline’s full capacity of 38 bcm
widely considered to be acts of sabotage. per year by 2027. This milestone was expected
With Yamal-Europe also no longer flowing to be achieved by 2025 when Power of Siberia
Russian gas westwards, due to sanctions and was brought on stream in late 2019.
counter-sanctions that Russia and Poland European gas prices have fallen substan-
have imposed on each other, this leaves only tially since spiking in late August to an all-time
Ukraine’s gas system and the TurkStream as record, as LNG supply remains while EU gas
routes for Russian gas flow into Europe. storage facilities have now been filled to close
Part of Ukraine’s capacity was also shut to 93% capacity. The November contract at
down in May, after Ukrainian state pipeline the Dutch TTF hub is currently trading at
operator GTSOU declared a force majeure, around €120 per MWh ($1,260 per 1,000 cubic
claiming Russia and its proxies were stealing metres), down nearly 8% from the previous
supplies. And Moscow and Kyiv are embroiled session and over 65% down from the record
in a fresh dispute over gas transit terms, raising high of €350 per MWh on August 26. ™

Week 42 20•October•2022 www. NEWSBASE .com P9