Page 140 - RusRPTJul22

Diesel Dash Europe’s seaborne imports of diesel-type fuel from ports in former Soviet Union countries have steadily dwindled since the operation began in late February, down month-on-month, and y/y, in March, April and May. But while the drop is steady, it’s not precipitous: Russia was still responsible for more than half of Europe’s imports of diesel-type fuel in May, dwarfing shipments from other suppliers in the Middle East and Asia, according to Vortexa data. The decline also appears to have found a floor, with Europe’s average daily imports during the first 20 days of June higher than the May average. Imports for that period were about 13.75mn barrels, enough to meet U.K. demand for roughly three weeks.
In the first four months of this year, US LNG exports to Europe have tripled year-over-year. The share going to Europe has gone from 1/3 to 3/4, while overall exports have grown 20%. As a result, the US is now the source of nearly 50% of Europe’s LNG imports.
Russian pipeline gas exports to the EU fell below 200 million cm/day in early June – the lowest levels in decades. Impact of terminations of nine Gazprom contracts (in 6 EU countries) being felt. The gas divorce is underway.
Russia has reduced gas supplies through Nord Stream 1 in the second week of June. Russia's Gazprom has said it is cutting natural gas supplies through the Nord Stream-1 pipeline by 40%. On Tuesday, the Russian energy company announced that it could transport only 100 million cubic meters of gas per day instead of the usual 167 million cubic meters due to engine malfunctions. Nord Stream 1, which transports gas from Russia to Germany, was launched in 2011 and has a capacity of 27 billion cubic meters per year.
German companies Uniper, RWE pay for Russian gas under Putin’s scheme on May 31. Under the scheme, buyers are obliged to deposit euros or
140 RUSSIA Country Report October 2020 www.intellinews.com