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    Gazprom cuts European gas supplies by over quarter YTD


The company halted deliveries to Poland and Bulgaria at the end of April after they refused to comply with the Kremlin's rubles-for-gas requirement.

by: NGW

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Gazprom cuts European gas supplies by over quarter YTD

Russia's Gazprom reduced gas supplies to the so-called Far Abroad, meaning Europe plus Turkey minus countries of the former Soviet Union, by 26.5% in January 1-May 15, the company reported on May 16.

Exports to these countries came to 55.9bn m3, Gazprom said on its Telegram channel, despite a 3.7% increase in the company's production to 193.8bn m3

The company halted gas supply to Bulgaria and Poland at the end of April, in breach of contracts, after the two countries refused to agree with the Kremlin's demand that gas payments must be converted into rubles for transfer to Gazprom. Despite these actions, Gazprom said in its latest message it was supplying gas to "foreign consumers in accordance with confirmed orders."

Gazprom also noted that gas exports to China via the Power of Siberia pipeline were growing, without disclosing figures.

The company also took a swipe at the European Commission's proposal to require member states to fill their gas storage facilities to at least 80% capacity by November 1, rising to 90% in subsequent years. It said that a further 49bn m3 of gas would have to be injected into storage to reach the 90% target. These facilities are currently only 40% full.

European gas prices remain at an unprecedented high, with the June contract at TTF currently trading at €96.2 ($101)/MWh, up 3.6% from the previous session.