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Russian pipeline gas exports to Europe drop to post-Soviet lows

by Reuters

MOSCOW Dec 29, 2022 - 12:09 pm GMT+3
Model of natural gas pipeline and Gazprom logo are seen on this illustration taken on July 18, 2022. (Reuters Photo)
Model of natural gas pipeline and Gazprom logo are seen on this illustration taken on July 18, 2022. (Reuters Photo)
by Reuters Dec 29, 2022 12:09 pm

Russian gas exports to Europe via pipelines plunged to a post-Soviet low in 2022 as its largest customer cut imports following the invasion of Ukraine and as a result of a major pipeline being damaged by mysterious blasts, Gazprom data and Reuters calculations revealed.

The European Union, traditionally Russia's largest oil and gas consumer, has for years spoken about cutting its reliance on Russian energy, but Brussels got serious after the Kremlin sent troops into Ukraine at the end of February.

State-controlled Gazprom, citing Chief Executive Officer Alexei Miller, a long-standing ally of President Vladimir Putin, said its exports outside of ex-Soviet Union will reach 100.9 billion cubic metres (bcm) this year. That is a drop of more than 45% from 185.1 bcm in 2021 and includes supplies to China via the Power of Siberia pipeline, through which Gazprom supplied 10.39 bcm last year.

Direct Russian gas exports to Germany, Europe's largest economy, were halted in September following blasts at the Nord Stream pipelines in the Baltic Sea.

Sweden and Denmark have both concluded that four leaks on Nord Stream 1 and 2 were caused by explosions, but have not specified on who might be responsible. NATO Secretary-General, Jens Stoltenberg, has called the damage an act of sabotage.

Russia accused British navy personnel of being behind the blasts, a claim that London said was unture.

Russian gas exports via the Nord Stream 1 pipeline totalled a record-high 59.2 bcm last year.

The 100.9 bcm of Russian gas pipeline supplies, which Gazprom defines as exports to "far abroad", or outside the former-Soviet Union, is one of the lowest since the collapse of the Soviet state in 1991. One of Gazprom's previous post-Soviet lows of gas sales to "far abroad" was at 117.4 bcm in 1995, according to Gazprom Export.

Russia, meanwhile has been increasing its sea-borne liquefied natural gas (LNG) sales, thanks mostly to Novatek -led Yamal LNG plant in the Arctic.

According to the Rosstat government body, Russia's LNG production rose by almost 10% in January - November to 29.7 million tonnes.

Increased energy prices have allowed Russia to make up for fewer gas shipments to Europe, and in the first ten months of the year, oil and gas profits increased by more than a third.

Gazprom also noted that its 2022 gas output is seen at 412.6 bcm, which is down from 514.8 bcm in 2021, when it reached a 13-year high.

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  • Last Update: Dec 29, 2022 2:10 pm
    KEYWORDS
    russian gas exports gazprom nord stream lng sales
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