Page 114 - RusRPTNov21

9.1.1b Oil and gas sector news
President Vladimir Putin commented that the gas-in of the second strong of Nord Stream-2 pipeline might be completed by mid-December, reports Interfax. Deliveries via the pipeline could start the day after the approval of the German regulator has been received.
Gazprom’s gas output and exports are up significantly in October but not much room for more exports. Interfax reported. This includes 22bcm of deliveries to the Russian market in October (+29% y/y), 423bcm of ytd production through October (+58bcm or 16% y/y), and a c10% y/y increase in exports to Europe and China to 158.8bcm. Deliveries to a number of European countries are up sharply, as well, including y/y increases of 110% y/y to Turkey, 23% to Germany, and 10% to Poland. Recent deliveries to China via the Power of Siberia pipeline of late are reportedly running 19% above contracted levels. Analysis: Not much room for extra exports. The high level of production – Gazprom is on track for its largest production year since 2008 – and domestic demand implies that most criticism of the company from Europe as to its deliveries to Europe are weakly founded, at best. Although with domestic storage now full as of 1 November and modest weather demand so far, some amount of export increase for refilling Gazprom’s European storage should be possible.
Nord Stream 2 AG has appealed against a German court ruling on an exemption from the EU gas directive. On May 15, 2020 the Federal Network Agency rejected Nord Stream 2 AG's application for a derogation from the rules of the EU Gas Directive, which was amended in 2019. Nord Stream 2 AG
114 RUSSIA Country Report November 2021 www.intellinews.com