Gazprom's non-CIS gas sales edge up in August from July lows

Gazprom's gas sales in non-CIS countries edged up in the first 15 days of August from their July lows to an average of 213 million cu m/d, an analysis of data published by the Russian gas group showed Aug. 16.

Supplies had dropped to just 206 million cu m/d in July as the Nord Stream pipeline to Germany was closed for 10 days due to planned maintenance after which flows were cut to just 20% of capacity late in the month.

In its regular sales update, Gazprom said deliveries to export markets -- excluding countries of the former Soviet Union -- in the period Jan. 1-Aug. 15 totaled 78.5 Bcm.

That implies sales of 3.2 Bcm, or 213 million cu m/d, in the period Aug. 1-15.

While up slightly on July, sales were well down on the average in August 2021 of 516 million cu m/d.

The much lower Russian gas sales have contributed to the recent strength in European gas prices, which hit new record highs on Aug. 15.

The Dutch TTF month-ahead price reached a new record high of Eur221.48/MWh on Aug. 15, according to Platts price assessments from S&P Global Commodity Insights.

Cut-offs

As well as slashing deliveries via Nord Stream, citing issues with the maintenance of turbines at the Portovaya compressor station, Gazprom has also cut off supplies to a number of European buyers over their refusal to comply with Moscow's new ruble-based payment mechanism.

The first companies to lose access to Russian gas due to the ruble issue were Bulgaria's Bulgargaz and Poland's PGNiG on April 27, followed by Finland's Gasum on May 21.

Deliveries were also halted on May 31 to Dutch trader GasTerra and on June 1 to Denmark's Orsted and to Shell, whose contract was for Russian gas supply into Germany.

Despite the low sales, Gazprom said it continued to supply gas to customers "according to confirmed orders."

Gazprom's sales in the Far Abroad -- traditionally Europe plus Turkey minus the countries of the former Soviet Union -- reached an all-time high 201 Bcm in 2018.

Sales data is now also said to include China -- which began importing pipeline gas from Gazprom at the end of 2019 -- and the total volume sold last year was 185 Bcm.

Gazprom said Aug. 16 that its supplies to China via the Power of Siberia pipeline continued to regularly exceed contractual volumes on a daily basis.

Production levels

Gazprom's average production in 2022 has been well down year on year. Its output in the period Jan. 1-Aug. 15 totaled 274.8 Bcm, implying production in the first half of August of 12.4 Bcm -- or an average 827 million cu m/d.

That was up on the July average of 774 million cu m/d, but still sharply lower than the 2022 monthly peak of 1.53 Bcm/d in January.

Gazprom 's output last year reached a 13-year high of 515 Bcm.