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    Gazprom's non-CIS exports slump 44.5% in Jan-Nov 2022

Summary

There is limited upside for Russian gas flow to Europe this year.

by: NGW

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Gazprom's non-CIS exports slump 44.5% in Jan-Nov 2022

Russian pipeline exports to countries outside of the Commonwealth of Independent States (CIS) were down 44.5% year/year in January through November, at 95.2bn m3, Gazprom reported on December 1.

Gazprom has steeply cut flow to Europe since Moscow began its war in Ukraine, after demanding buyers pay for gas in rubles and subsequently reducing supplies via the Nord Stream 1 pipeline, citing technical problems relating to Western sanctions. 

The company's overall production was down only 19.4% at 376.9bn m3 in the 11-month period, as Russian gas consumption remained relatively firm, down only 5.7% year/year as a result of a domestic industrial slowdown.

Gas exports to China via the Power of Siberia pipeline continue to grow, Gazprom said, without divulging figures. Since launching Power of Siberia at the end of 2019, the pipeline has been steadily ramping up gas flow. Contractual volumes are set to reach 36bn m3/year sometime in the mid-2020s under a contract Gazprom reached with CNPC in 2014.

After major leaks occurred at the pipeline in late September as a result of suspected sabotage, there is limited upside for Russian gas flow to Europe, especially given Russian and Polish sanctions have rendered the Yamal-Europe pipeline's westward flow impossible and capacity constraints via Ukraine's system.

Rather than pointing to Russia's own actions, Gazprom noted that gas consumption in the EU had dropped significantly in the 11-month period, by 50bn myr/yr.