Gazprom’s exports to non-CIS countries have decreased by almost half since the beginning of the year

Company “Gazprom” summed up 11 months of 2022 for gas production and supplies. Gas exports to non-CIS countries amounted to 95.2 billion cubic meters. m, which is 76.3 billion cubic meters. m (44.5%) less than in the same period in 2021. The decrease in gas consumption in the European Union (EU) has become a key factor in reducing gas demand in the world, Gazprom noted. For 11 months of 2022, according to preliminary estimates, global demand decreased by 55 billion cubic meters. m.

Gazprom’s production, according to preliminary data, amounted to 376.9 billion cubic meters. m of gas. This is 90.8 billion cubic meters. m, or 19.4%, less than in 2021. Demand for the company’s gas in the domestic market over this period decreased by 12.8 billion cubic meters. m, or 5.7%. On November 28, Gazprom’s gas transmission system supplied Russian consumers with a record volume of gas for that day; on November 29, an absolute historical daily maximum for November was reached – 1,486.7 million cubic meters. m.

The decrease in gas consumption in 27 EU countries amounted to about 50 billion cubic meters. m, in the UK – more than 6 billion cubic meters. m. Gazprom supplies gas to non-CIS countries in accordance with confirmed applications. Gas exports to China are growing through the Power of Siberia gas pipeline.

On November 14, gas extraction from European underground storage facilities began, Gazprom also reports, citing data from Gas Infrastructure Europe. As of November 29, 2.3 billion cubic meters were selected. m – 3.3% of the volume of gas pumped in preparation for the heating season.

Gas is being withdrawn from UGS facilities in Ukraine. As of November 29, the volume of gas in storage for 2.3 billion cubic meters. m, or 14% less than in 2021. “0.7 billion cubic meters have been selected. m of gas is 12.9% of the volume of gas pumped in the summer,” says Gazprom in its Telegram channel.

“At the same time, the load on UGS facilities in Europe in the current autumn-winter period will be higher than in previous years, due to the changed logistics and sources of gas supply to the European market,” the company notes.

The EU began to refuse Russian energy carriers after the start of the military operation. Today, December 1, the price of gas futures on the London ICE exceeded $1.7 thousand per 1 thousand cubic meters m for the first time since October 13. November 30 gas price exceeded $1.5 thousand per 1 thousand cubic meters m. for the first time since October 14th.

Formerly European Commission introduced the concept of the gas price ceiling in the EU. The ceiling is proposed at the level of $3,000 per 1,000 cubic meters. m, it will only affect the nearest futures contract on TTF and will not affect the OTC market. Moreover, the ceiling will not work if LNG prices in the European region are at the level of $2.3 thousand per 1 thousand cubic meters. m or higher.

Read more about gas supplies in the publication of the Money app “How a cubic meter will fall”.

Maria Fedotova