HomeNewsRussian pipeline gas exports to Europe reach highest this year

Russian pipeline gas exports to Europe reach highest this year

8/1/2024

Russian energy giant Gazprom's average daily natural gas supplies to Europe in July reached their highest this year, up 5.7% compared with a year ago and 12% higher than in June, Reuters calculations showed.

The month-on-month increase reflected the end of maintenance on the Turkstream pipeline from Russia to Turkey, and analysts also cited a seasonal increase in demand as utilities began injecting gas into storage ahead of the winter.

The calculations, based on data from the European gas transmission group Entsog and Gazprom's daily reports on gas transit via Ukraine, showed average daily pipeline exports increased to 91.5 MMm3 last month from 86.6 MMm3 in July 2023 and up from 81.8 MMm3 in June.

So far this year, Gazprom's natural gas exports to Europe have reached about 18.3 Bm3. That compares with between 175 Bm3 and 180 Bm3 when annual flows to Europe reached their peak in 2018–2019. Gazprom has not published its own monthly statistics since the start of 2023.

Russia supplied a total of about 63.8 Bm3 of gas to Europe by various routes in 2022, according to Gazprom data and Reuters calculations. The volume decreased further, by 55.6%, to 28.3 Bm3 last year.

Gazprom incurred losses of almost $7 B in 2023 (its first annual loss since 1999) after gas exports to Europe fell. Its net loss, according to Russian accounting standards in the first half of 2024 increased by 88% to 480.6 B rubles year-on-year, mainly because of a sharp year-on-year decline in gas prices in Europe, analysts said.

Analyst Ronald Smith from consultancy BCS said global prices fell sharply from record highs and Gazprom's price adjustment had lagged.

"This year, prices have been stable to even rising, meaning Gazprom’s gas has been competitive and exports rebounded to levels that might be described as the 'new normal'," he said.

 

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