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A frosty January in Europe helped Gazprom start the year better than last year

Ukraine (bbabo.net), - Russian pipeline gas exports to Europe in January significantly exceeded the figures for the first month of last year. Among the reasons: it was frosty in the EU, and fuel prices were much lower.

In January, Gazprom increased supplies to Europe, excluding Turkey, by almost one and a half times compared to last year. According to the European Union gas transmission system operator platform ENTSOG, in the first month of 2024, exports amounted to 2.52 billion cubic meters. Whereas a year earlier it was at its lowest levels - 1.8 billion cubic meters.

Such data is provided by ENTSOG for Russian gas receiving points in Ukraine and Bulgaria - Sudzha and Strandzha 2/Malkochlar. Russian gas supplies from the Turkish Stream pass through the last point.

As a result of sanctions, counter-sanctions and sabotage, Gazprom is left with only two routes for gas supplies to Europe - through Ukraine and via the Turkish Stream.

Obviously, the main reasons for the increase in exports were the frosty weather in Europe this January and the lower price of gas.

“In January of this year, gas demand in Europe increased by 11%. This is still 14% lower than the 2017-2021 average. This is not a recovery, but it could be a start,” writes ICIS analyst Tom Marzek-Manser in X.

Gas prices, in turn, have fallen significantly in Europe. If in December 2022 their minimum cost for deliveries for January 2023 at the TTF hub was at least $925 per thousand cubic meters, then quotes for the first month of winter this year are $366.

According to ENTSOG, January 2023 was the lowest for Gazprom’s exports to Europe. In August, supplies have already reached 2.85 billion cubic meters per month.

Russian gas is still purchased directly by Austria, Italy, the Czech Republic, Slovakia, Hungary, Serbia, North Macedonia and Greece. All customers receive fuel under long-term contracts, in which its price is tied to European stock exchange quotations.

The International Energy Agency (IEA) believes that in 2024, Gazprom’s supplies to Europe will remain at the 2023 level.

As bbabo.net reported, despite the geopolitical confrontation with the West and a decrease in supplies, Russia remains one of the main sources of gas supplies to Europe. In 2023, its share in fuel imports to the region amounted to more than 15%.

A frosty January in Europe helped Gazprom start the year better than last year