Gazprom Export Revenues Halve in Jan-Feb
Gazprom's revenues from gas exports slumped 51.3% year on year in January-February, data published by Russia's Federal Customs Service (FCS) on April 6 shows, landing at $5.05bn.
Supply volumes were also down 24.6% at 32.5bn m3. Shipments totalled 14.2bn m3 in February, marking a 22.5% yr/yr decline.
Rising LNG imports and warm weather drove down European gas prices last year. Gazprom has shifted towards more hub-based pricing in its supply contracts in recent years, increasing its exposure to these prices. The company's sales this year were also affected by high storage levels and, more recently, Covid-19 lockdowns sapping demand.
Gazprom is looking to consolidate its position as Europe's top gas supplier with the completion of the 55bn m3/yr Nord Stream 2 gas pipeline to Germany. But this project is now expected to come on stream in early 2021 – over a year behind schedule – after being targeted by US sanctions which forced Swiss contractor Allseas to halt work on the pipe in December.
Russia is understood to be planning to use its own pipelaying vessel, the Akademik Cherskiy, to finish the remaining 6% of Nord Stream 2's offshore section. The vessel is currently off the coast of Angola on a course for the Spanish port of Las Palmas, ship-tracking data shows. It should arrive there on April 18 but the company has not commented to NGW how it will complete the job and at what extra cost.
The Akademik Cherskiy left the Russian Far East in February and has travelled across the Asia-Pacific region and around Africa to get to Europe.