Page 162 - RusRPTApr23

Energy and Natural Resources Fatih Donmez said in a TRT TV channel broadcast, adding that the hub may start its operations within a year.
For the first time in 1.5 years, gas in Europe costs less than $500. The gas price at Europe's largest TTF hub in the Netherlands fell to €45.4 per MWh (about $481 per thousand cubic metres), the lowest level since August 2021, tradingeconomics data showed. In February, gas prices in Europe fell by 18.6%. The price decline continues for the third consecutive month, and it is the most prolonged period of sustained price decline since 2020. The downward trend is the result of record volumes of liquefied natural gas imports from the US, the growth of electricity generation from alternative sources, and the overall 13% reduction of gas consumption. Also, due to a warm winter in Europe, storage facilities remain 62% full, which is higher than the 10-year average of 54% for this time of year.
The European Union plans to take its first steps into the global natural gas market as a buyers’ cartel in April as it seeks to drive down energy prices. Initial estimates put joint demand from the bloc’s 27 nations and three neighbouring countries at 24bn cubic metres over the next three years, according to European Commission Vice President Maros Sefcovic. After the tender is launched in April, the EU expects the first contracts with suppliers from the US to the Middle East and Africa to be signed around June.
The bloc pushed through a swathe of emergency regulations last year to ensure that the unprecedented price spikes don’t happen again, including making gas demand pooling mandatory for 15% of reserve refilling. That would amount to around 13.5 billion metric tons, still a fraction of the 338 billion cubic metres that the EU imported in 2021. On the supply side, more than 50 companies from around the globe are interested in engaging with Europe via the energy platform,
This year, Russian gas exports to EU expected to fall to 25 bcm from 62 bcm in 2022. The average gas price in Europe in December amounted to about $1,272 per 1,000 cubic metres, in January - $712, and in February - around $583
Potential Gazprom’s supplies of natural gas to China via Central Asian countries can be up to 20bn cubic metres of gas annually, the Center of Energy Development said in its report.
"We expect Gazprom will manage to negotiate supplies up to 10bn cubic metres of gas to Uzbekistan and Kazakhstan by the end of this year, with 4-6bn cubic metres out of them to be transit gas for China. From our point of view, the renovation of the Central Asia - Center gas pipeline infrastructure to supply 20-25bn cubic metres of gas over it can take about a year more," the Center said.
Up to 10bn cubic metres of gas can be supplied over the Bozoy-Shymkent gas pipeline and further on to China. Gazprom can export 10bn cubic metres more to China via the gas transmission system of Uzbekistan, which is connected to the Central Asia - China gas pipeline, analysts noted.
162 RUSSIA Country Report Russia April 2023 www.intellinews.com