Gazprom Sees European Gas Glut in 2021

MOSCOW (Reuters) — Russian gas giant Gazprom expects excess supplies in Europe's natural gas market to continue in 2021, the head of the company's exporting arm said on Monday. 

Gazprom has seen its share of the European gas market, where it makes 55% of sales revenue, decline amid sluggish demand and competition from other supplies, such as LNG.

"The majority of challenges and threats are still here. One of them is general oversupply, which we are likely to see in 2021 as well," Elena Burmistrova said, as flows of seaborne LNG to Europe increase.

One reason the company cited for the oversupply is due to increased LNG exports from the U.S.

"U.S. LNG suppliers have unbalanced the European market and failed to stabilize it," she said.

Gazprom expects its gas exports to Europe to be at least 170 billion cubic meters (bcm) in 2020, compared with 199 bcm in 2019.

Burmistrova said LNG supplies to Europe in January to June increased by almost 10 bcm, or 17% year-on-year, driving gas prices to all-time lows.

She also called the threat of more U.S. sanctions against the Gazprom-led Nord Stream 2 gas pipeline project an attempt to "oust Russia by using non-market instruments".

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