Russia’s Gazprom does not plan to export Europe gas via the Yamal pipeline in February.

Gazprom, Russia’s state-owned energy company, stated Monday that it has not booked any capacity for gas transport to Europe via the Yamal pipeline next month. This is in line with a sharp decline in Russian exports to this region this year.

Gazprom reported that Russian gas pipeline exports have fallen 41% since a year ago. This is in spite of the fact that the Yamal-Europe pipeline has experienced a reverse in its operation, which normally pumps Russian gas from Germany to Poland.

Gascade, a German network operator, reported that Monday was the 28th consecutive day of this phenomenon.

The Kremlin-controlled organization has not yet booked capacity through the pipeline for February. However, this could change as the group is able to participate in daily auctions.

Since Dec. 21, the link has been in reverse, driving up gas prices. However, they dropped Monday due to strong liquefied natural gases (LNG), and higher wind power output.

Europe Needs a New Gas Storage Strategy

In the midst of a wider standoff with the West regarding Ukraine, the exports of Russian commodities have been in the news lately. Moscow initiated talks with NATO and the United States to prevent Ukraine from joining the bloc.

Experts and politicians have also accused Russia of intentionally withholding gas exports to get clearance from Germany, the European Union and other countries for its Nord Stream 2 pipeline, which was built to bypass Ukraine.

Russia denies any plans of attacking Ukraine and claims it fulfils all its contractual obligations regarding gas exports.

It is unclear when the Yanal Europe pipeline will return to normal. Gazprom sources say that the Kremlin-controlled company will likely switch flows sometime this month. Gazprom already paid for January’s westbound volumes.

European consumers, utilities, and governments face high gas prices, which can cause serious problems. Some firms have been forced out of business due to the rapid increase in costs.

The British February delivery contract was lower by 10 pence at 200.00 pence/therm by 1147 GMT. However, the Dutch March contract was lower at 5.78 euros per megawatt-hour (MWh) and 80.50 euros.

The Dutch front-month contract fell by 1.95 Euros at 81.40 euro/MWh.

Monday’s reverse flows were approximately 7 million kWh/h. This is the same as last weekend and this week. They are expected to continue in reverse through Tuesday morning, according to data from the Mallnow metering station at the German-Polish border.

According to monthly auction results, Gazprom has not booked any gas transit capacity via this route for February.

On Saturday, Alexander Novak, Deputy Prime Minister, reiterated that Russia is ready to supply additional gas to Europe if new long-term agreements are in place.

On Monday, the capacity nominations for Russian gas flows from Ukraine to Slovakia via Velke Kapusany border, another major route to Europe was 286,970-megawatt hours (MWh).

This was a steady increase in nominations compared to 2022, but far below the levels of over 900,000MWh recorded in December, according to data from Eustream, a Slovakian pipeline operator.

Gazprom has not yet booked gas transit capacity to export gas through Ukraine for February via two other crossing points, but 11.14 mcm/day capacity via Velke Kapusany was booked for Russian gas in the following month.

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned


Weekly Newsletter

Sign up to receive exclusive stock market content in your inbox, once a week.

We don’t spam! Read our privacy policy for more info.