Russia’s Gazprom PJSC again reported a slide in both natural gas production and exports as it has nearly cut off all deliveries to Europe in retaliation for sanctions against its war in Ukraine.
The state-owned company, which holds the world’s largest gas reserves and is among the largest exporters, said year/year deliveries to countries outside the former Soviet Union fell by nearly 40% to 84.8 billion cubic meters (Bcm), or about 3 Tcf, between Jan. 1 and Sept. 15.
Over the same time frame, Gazprom said preliminary data show it produced 300.8 Bcm (10.6 Tcf), or 16% less than the year-ago period. Domestic demand for the company’s gas has also declined by 3.3% this year, according to the company.
Nord Stream 1, the largest conduit for moving Russian gas into Europe, was also shut down earlier this month due to what Gazprom said was an oil leak that wouldn’t be fixed until sanctions against Russia are lifted. European officials have accused Russia of weaponizing its energy supplies amid the war in Ukraine.
Currently, only about 1 Bcf/d of Russian gas is making its way into Europe via Ukraine.
Russia provided 45% of Europe’s natural gas last year, according to the European Commission. Storage inventories on the continent are above the five-year average, thanks in large part to record amounts of liquefied natural gas that have arrived in Europe to fill the void.
Gazprom again said that its exports to China via the Power of Siberia pipeline are growing under a bilateral long-term contract with China National Petroleum Corp. Gazprom said deliveries “regularly go beyond the daily contract quantities,” noting a record was set on Sept. 10. No figures were provided.
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