Page 10 - FSUOGM Week 09 2023

FSUOGM PERFORMANCE FSUOGM

Russian gas output down 13.5%

in January

RUSSIA RUSSIAN natural gas production was down Sharples, an analyst at the Oxford Institute for
13.5% in January year on year, totalling 52.2 Energy Studies.
Supply was up 1.6% bn cubic metres, the Federal State Statistic Ser- “The high has been taken through a massive
month on month, vice said last week, but this still marked a 1.6% decline in gas production rather than redirect-
however. increase on December. ing,” he told S&P Global Commodity Insights
Output of associated petroleum gas fell by last week. “The only destination for redirected
only 4.7% y/y and rose 2.9% month on month, to flows is to their near-neighbours. But we’re talk-
8.8 bcm. Meanwhile LNG production dropped ing very limited volumes compared with what
by 13% y/y to 2.6mn tonnes. they were exporting to Europe.”
Russia’s Gazprom, previously the biggest gas Azerbaijan has sought Russian gas to cover its
supplier to Europe, lost most of its market share domestic needs this winter, but the total supply is
last year, triggering a significant decline in its agreed to amount to only 1 bcm. On February 9,
production. The company’s output came to just Gazprom also said it had held discussions with
413 bcm in 2022, versus 515 bcm produced in the energy ministers of Kazakhstan and Uzbek-
the previous year. istan on potential “trilateral co-operation,” after
Russian President Vladimir Putin is keen on gas co-operation roadmap agreements were
developing a gas hub in Turkey from where more signed with Kazakhstan on January 18 and
Russian gas could reach South-east Europe, Uzbekistan on January 24.
though it remains to be seen how many buyers Russian Deputy Prime Minister Alexander
would be willing to commit to new volumes. Novak also said in November last year that the
Meanwhile, Gazprom has proposed expanding three countries had started talks on forming a
gas exports to Central Asia, to help that region “gas union” that would enable them to co-ordi-
cope with a recent supply crunch. nate on gas transport, export and processing. But
Gazprom’s pipeline exports to countries it is unclear how the proposal has been received
outside the Commonwealth of Independent in either Astana or Tashkent.
States (CIS) amounted to only 100.9 bcm, which On February 15, Gazprom also held discus-
included 15.4 bcm of gas delivered to China via sions with Turkmenistan on “the courts and
the Power of Siberia pipeline. That indicates that prospects of co-operation in the gas sector.” On
supplies to Europe and Turkey came to only 85 February 7, it also held talks with Azerbaijan’s
bcm, versus close to 200 bcm in previous years. SOCAR on the “course of interaction between
Russia is unlikely to claim back most of its the companies as well as possible directions for
lost market share in Europe, according to Jack the development of co-operation." ™

P10 www. NEWSBASE .com Week 09 02•March•2023