Russia’s exports outside the former Soviet bloc fell by 45.5% in 2022
Tensions and punitive measures between the countries of the European Union (EU) and Russia affect Moscow. According to the latest figures released by the Russian gas giant Gazprom, its exports in 2022 decreased by 45.5% compared to 2021, excluding countries of the former Soviet bloc (Russia, its western and southern neighbors). Alexey Miller, CEO of Gazprom, said in a statement that the group supplied 100.9 billion cubic meters of gas to these countries in 2022. “far away”185.1 billion in 2021 vs. about 21 billion m3 Delivered in 2022, which is an increasing number, but it is far from making up for the lost volumes of exports through gas pipelines.
The Russian producer said on Telegram that Gazprom’s own production fell to 412.6 billion m3 this year. That’s about 20% from 2021 and the lowest level since at least 2008, according to the company.
Economic conflict between the EU and Russia
At the beginning of this decrease in exports, we have to take into account the disputes with certain European countries. Before Moscow’s decision to invade Ukraine on February 24, the European Union was the first buyer of Russian gas. In response to this military intervention, Western countries imposed a series of economic sanctions against Russia. In response, Moscow has sharply reduced its hydrocarbon exports to the EU, in particular, it has stopped the transportation of the Nord Stream 1 and Yamal gas pipelines connecting a number of European countries with Russia.
Since then, all European countries have tried to diversify their sources of supply. As a result,According to forecasts of the Wood Mackenzie firm, the Old Continent’s purchase of Russian gas has decreased from 191 billion cubic meters in 2019 to 90 billion cubic meters this year and will fall to about 38 billion cubic meters next year. Without Russian gas, which is mainly delivered by pipeline, Europeans are turning to new LNG suppliers. On Wednesday, December 28, Finnish operator Gasdrid announced the arrival of the country’s first LNG import terminal vessel. With this regasification infrastructure, the Baltic country intends to wean off Russian gas, which accounted for two-thirds of its total consumption, or 1.49 billion m3, in 2021, according to Gazprom data. Natural gas accounts for only 8% of Finland’s total energy consumption.
In December, Germany commissioned its first LNG processing terminal. Before the invasion of Ukraine, it was 55% dependent on Russian gas imports. Five more floating terminals will follow in 2023. France, which currently has four LNG import port terminals (two in Fos-sur-Mer, one in Montoir de Bretagne and one in Dunkirk), is also looking to strengthen its infrastructure with a new site in Le. Havre. According to TotalEnergies, which is responsible for its construction, the latter should start operating in September 2023. TotalEnergies’ French subsidiary LNG Services will even launch a booking campaign in January for all Europeans to regasify the 2.5 billion m3 per year floating LNG carrier that will arrive at the French giant’s Le Havre at the end of December. Energy.
The conflict between Brussels and Moscow is not limited to gas. In early December, the European Union, G7 countries and Australia also agreed to cap the export price of Russian oil at $60 per barrel, hoping to deprive Moscow of revenue. In response, Russia announced that it will ban the sale of its oil to foreign countries that use the oil cap from February 1.
However, this Russian-European tension does not worry the markets at the moment. The benchmark contract for the continent, TTF on the Dutch market, fell another 4.67% to 72.75 euros per megawatt hour (MWh) for delivery on Monday morning, after reaching 342 euros per megawatt hour in February 2022. This is the lowest price since February 21. Oil also began to fall. Brent crude was trading at $85.99 a barrel this morning, down from a peak of $130 in March. Lower energy prices in part due to higher than seasonally normal temperatures that reduce consumption. But above all, it is the fear of a global economic slowdown following the outbreak of new Covid-19 cases following the reopening of China’s borders that has prompted investors to reduce their hydrocarbon purchases.
Moscow looks to Asia
In turn, Moscow is trying to increase gas supplies to China, whose economy is very energy-intensive, to compensate for its losses.
At the end of December, Vladimir Putin began the exploitation of a huge field located in Siberia, which allowed to increase this export. Russia also plans to build the Siberian Force 2 gas pipeline to supply Beijing through Mongolia from 2024. On Monday, Gazprom CEO Aleksai Miller explained that “ prospects for the growth of gas consumption in the world are mainly related to Asia, and first of all to China. “. He also said that deliveries to Beijing in 2022 have already occurred. At China’s request “, the quantities stipulated in the contracts.
With the strengthening of the Siberian Force 1 gas pipeline, the future Siberian Force 2 infrastructure should make Moscow possible. “supply about 100 billion m3 Russia will deliver gas to China, Aleksai Miller assures.
(via AFP)
