Home News Gazprom exports to Europe down 27% as buyers move to spot market

Gazprom exports to Europe down 27% as buyers move to spot market


In the first four months of this year, Gazprom delivered to countries outside the Commonwealth of Independent States, namely Turkey and most European countries, 50.1 billion cubic meters of natural gas, 18.4 billion cubic meters less than in a similar period last year. In parallel, Gazprom reported that between January and April 2022, its gas supplies to China via the “Power of Siberia” pipeline increased by almost 60% annually, without providing exact figures on the volume of deliveries.

“Gazprom continues to supply gas in accordance with consumer demands and in terms of contractual obligations,” the Russian-controlled company said.

In recent months, Europe has been importing record amounts of liquefied gas at low prices, amid limited demand from Asia, as it wants to reduce its dependence on natural gas delivered by pipeline from Russia. This, as well as the reduced demand for heating due to favorable weather conditions, allowed Gazprom customers to reserve smaller quantities than those stipulated in the contracts and to move to more attractive offers on the spot market.

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It is “more advantageous” for customers to take advantage of the flexibility offered by long-term agreements with Gazprom and to try to get short-term supply from the spot market, where prices were lower in April than those provided for in forward contracts. long, says Thomas Rodgers, an analyst at ICIS.

Given that Gazprom did not provide detailed figures for each export market, it is difficult to estimate how the Russian group’s deliveries to Turkey and most European countries, its main export market, have evolved. Russia cut off gas supplies to Poland and Bulgaria on Wednesday after threatening to shut down supplies if customers did not pay in rubles.

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Gazprom also reported that between January and April 2022, it produced 175.4 billion cubic meters of natural gas, down 2.5% from a similar period last year.

The Romanian companies do not have import contracts concluded directly with Gazprom, but with two intermediary companies: Imex Oil, a subsidiary of the Russian group Conef, and WIEE, a joint venture between Gazprom and the Germans from Wintershall.

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