Gazprom's exports to Europe will fall markedly this year
Gazprom’s export to Europe in 2020 will be 15-30 billion cubic meters of gas less than in 2019. This is stated in the study of the Center for Energy of the Moscow School of Management “Skolkovo” “Coronacrisis: the impact of COVID-19 on the fuel and energy complex in the world and in Russia.”
“Based on the results of the first quarter of 2020 and occurring in countries Europe’s demand reduction, by the end of the year we can expect a decrease in Russian pipeline gas supplies to Europe by 15-30 billion cubic meters (depending on the scenario), ” is noted in the report. .
Skolkovo experts also noted that in March gas production in Russia will decrease annually terms by 12.3% to 59.4 billion cubic meters. This is precisely due to the fact that export has declined – Gazprom’s deliveries to Europe are now at their lowest levels since 2015.
“In addition, these deliveries will have to be carried out in the context of a significant fall in gas prices …. Low oil prices will begin to play a “plus” concern only in late autumn, “the report said.
” In the fall, long-term contracts with oil products indexation will reflect the current drop in oil prices, and Gazprom’s gas will become more competitive. Until then, customers can continue to choose cheap gas from the spot market, ”analysts write.
Gas exports are little dependent on cheaper oil
At the same time, the impact of cheaper oil on the competitiveness of Gazprom’s European supplies will be limited. Indeed, already over 60% of the volumes under the company's contracts are tied to the quotes of hubs, experts say Skolkovo.
Gazprom, by the end of 2019, reduced gas exports to non-CIS countries by 1.3% to 199.2 billion cubic meters. This volume also includes supplies to China through the “Power of Siberia”, which began in early December and reached 328 million cubic meters by the end of the year. At the same time, Gazprom did not officially disclose the dynamics of deliveries this year. : ///
Record Gazprom’s export to Europe this year will fall markedly first appeared TEKNOBLOG .
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