Russia says natural gas exports to Europe will plunge about 66% while Gazprom's output grows on strong Chinese demand
- Russian gas exports to Europe will fall roughly 66% this year, according to the Kremlin's deputy prime minister.
- Russia accounted for 40% of Europe's gas supply before the invasion of Ukraine, but that share is now 9%.
Russian natural gas exports to Europe will fall roughly 66% this year, according to the Kremlin's deputy prime minister, even as the country's top gas company increases production.
Exports to Europe will fall by 50 billion cubic meters, Alexander Novak said Thursday. Exports a year earlier were 150 bcm, and Russia accounted for 40% of Europe's supply before the Kremlin invaded Ukraine.
But that share has since tumbled to 9% as Moscow cuts off gas flows and indefinitely shuts down the Nord Stream 1 pipeline. European officials have accused the Kremlin of using energy as a weapon to retaliate against sanctions for Vladimir Putin's war on Ukraine.
Meanwhile, Russia's state-run energy major Gazprom has increased gas production this month. From September 1 to 15, Gazprom produced 847 million cubic meters per day, an uptick of 2.1% compared to the prior month, according to data compiled by Bloomberg. Overall output year to date is still down 16% from 2021.
But this month's uptick comes as Chinese demand grows. Russian gas exports to China will reach 15 billion to 16 billion cubic meters this year, according to Bloomberg, compared to 10.4 billion cubic meters in 2021.
Gazprom's Deputy Chief Executive Officer asserted Thursday that Russian gas is irreplaceable to Europe, telling a conference that "there is not a country which is able to supply resources comparable to resources of fields in Siberia and Yamal peninsula."
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