Gazprom sees near-historic high for first-half sales
Russian pipeline gas export monopoly Gazprom saw close to record sales in January-June this year, it said July 1, with 99.9bn m³ sold to the 'far abroad' (countries outside the former Soviet Union). The H1 record, for which it did not provide a year, was 101.2bn m³.
New capacity to Turkey under the Black Sea and strong flows through Poland and Nord Stream contributed to sharp increases in flows to Turkey, Bulgaria, Romania, Greece and Serbia. To the north, Germany, Italy and Poland also saw more gas flow from Russia. Sales overall were up by a quarter, or 20.4bn m³ on H1 2020.
Sales were down last year owing to the drop in demand that arose from the pandemic. This year, demand is stoked by a combination of power generation, heating, and depleted storage. Summer gas prices at the Dutch Title Transfer Facility have roughly been the same as winter prices and are at close to record highs at €34-35/MWh at the June 30 close, according to one trader.
Over the period, Gazprom produced 260.8bn m³, which is 18%, or 39.8bn m³, more than H1 2020, according to its preliminary data. It is also planning to inject record amounts into storage in Russia following the heavy withdrawals over the winter.
High exports and domestic demand notwithstanding, Gazprom's refusal to book more transit capacity through Ukraine has upset the country's national transmission system operator. It said Russia was abusing its market power when it did not – yet again – book monthly interruptible capacity for July this week despite the Nord Stream and Yamal pipelines being on maintenance.
There has been comment that Gazprom is trying to use the fear of very high prices next winter to ensure that Nord Stream 2 is completed and commissioned in time. Gazprom Export has so far declined to comment to NGW on its motives. Others have suggested that Ukraine is offering too much interruptible capacity on unfavourable terms, limiting how much gas Gazprom can send.
Exports to China through the Power of Siberia pipeline also continue growing, it said, providing no data. The line began flowing in late 2019.