Gazprom's European Gas Export Growth Slows to 4.8%
MOSCOW (Reuters) — The pace of Gazprom's natural gas exports' growth to Europe has been gradually slowing in recent months to just under 5% from double digits seen earlier in the year, according to data from the Russian gas giant released on Wednesday.
Russia's natural gas exports have been a focal point against a backdrop of soaring European gas prices buoyed by economic recovery and tight supplies.
Some experts and politicians have accused Russia of deliberately undersupplying Europe to win approval to begin flows through the Moscow-designed Nord Stream 2 gas pipeline, which lays idle awaiting the go-ahead from Germany.
Gazprom has said it met its contractual obligations on gas supplies to its European customers, while its key clients have said they haven't asked the company for more deliveries.
The company said on Wednesday its natural gas exports outside the former Soviet Union from Jan. 1 to Dec. 15 had increased 4.8% year-on-year to 178.1 billion cubic meters (Bcm).
That's down from an annualized rise of 6.6% in the first 11 months of the year, 10% for 10 months, 15.3% for 9 months, 19.4% for January - August and 26% for the first half of the year.
In January alone, the rise was 45%.
Gazprom has said the decline reflected the demand in the region and it expected to generate record-high annual revenues this year thanks to robust gas prices in Europe.
Ron Smith, a senior oil and gas analyst at Moscow-based BCS Global Markets, said the company has been focusing on providing gas for domestic consumers amid the cold Russian winter, while effectively running at 100% production capacity or 1.5 Bcm per day.
"The issue with dropping exports is mostly to do, I think, with European gas consumers refusing to buy at hub-linked prices, preferring to take gas from storage that was injected at much lower prices back in summer," he said.
"This game can't be played indefinitely, of course, and at some point, they will have to move back to buying more gas directly from suppliers."
Gazprom also said in a statement on Wednesday its gas output from Jan. 1 to Dec. 15 had risen by 14.2% year on year to 490.4 Bcm.
The company said it continues to inject gas into its storage facilities in Europe.
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