Page 122 - RusRPTFeb23

Ukraine. The UK consumes about 75bn cubic metres of gas in average per year.
Russia reduced the daily gas transit through Ukraine by another 10%. On January 4, the Russian Federation reduced the daily natural gas transit through the Ukrainian GTS to Europe by another 10%, to 38.4mn cubic metres per day. ExPro analysts calculated that this is the lowest level in the entire history of observations since 1991. Currently, Russia transports natural gas through Ukraine to Slovakia and Moldova. Transit to Moldova remains at about 6mn cubic metres per day. However, transit to Slovakia on January 4 decreased from 36.8 to 32.8mn cubic metres. In general, the volume of Russian gas transit is approximately one-third of the guaranteed 109.6mn cubic metres per day capacity booked by Gazprom. The long-term contract concluded for 2020-2024 on the terms of "send or pay" stipulates that Russia must pay for the entire reserved volume - in 2023, this amounts to 40bn cubic metres.
Abnormal heat has brought gas prices in the EU to below the level since the war started. Natural gas prices in Europe continued to slide as warmer weather dampened demand and eased pressure on policymakers and central bankers. According to Bloomberg, the underlying futures fell 7.8% on January 4 to the lowest level since mid-February 2022. For the next month, gas futures on the TTF exchange in the Netherlands fell 6% to €68 per megawatt-hour (less than $750 per thousand cubic metres), the lowest intraday level since February 16. On January 3, they fell by 6.1%. The European markets now face massive underconsumption, combined with oversupply, said Niek van Kouteren, a lead trader at Dutch energy company PZEM NV. Storages have again been filled over the last two weeks, he added.
Gazprom, the Russian gas holding, and China National Petroleum Corporation (CNPC) discussed key areas of cooperation for 2023, including a project for gas supplies via the Far East route and the design of the Soyuz Vostok gas pipeline through Mongolia, Gazprom said in a press release on January 12.
Gazprom and CNPC are working to expand their business as Russia attempts to switch its gas export business from West to East. Gazprom's total exports to China will reach 48bn cubic metres of gas per year in the coming years, although no firm deadline was mentioned. In addition, taking into account the transit gas pipeline through Mongolia, exports could reach almost 100bn cubic metres per year.
The statement said that the meeting participants reviewed the results of their joint activities for 2022 and discussed the plans regarding key areas of cooperation for 2023. The Russian side emphasised that Gazprom is reliably supplying gas to China via the Power of Siberia gas pipeline, which is due to be expanded.
Particular attention was paid to the ongoing implementation of the arrangements provided for by the sales and purchase agreement for natural gas supplies via the Far Eastern route, which was signed by the companies in February 2022.
122 RUSSIA Country Report February 2023 www.intellinews.com