Russian gas exports via pipeline to Europe and Turkey in the
first 10 months of 2016 were 13.05 Bcm higher year on year, data
from state-controlled Gazprom showed Tuesday, pointing to a surge in
supplies of some 2.3 Bcm in October.
Gazprom's deliveries to Europe and Turkey -- but not including the
former Soviet Union countries -- were 10.7 Bcm higher year on year
in the January to September period.
This means October saw a sharp step-up in supplies to its key
markets.
Russian oil-indexed gas remains competitive against the European gas
hubs given the continued low oil prices, with Gazprom's main
European customers said to be maximizing their purchases as far as
possible under their long-term contractual conditions.
October exports were also boosted by a sharp increase in supplies
to Turkey after gas flows from Iran were halted by an explosion on a
pipeline on Turkish territory on Friday.
"Gazprom fully satisfies the increased requests from Turkey -- in
the last four days of October, Russian gas supplies to this country
exceeded the month's daily average by 14%," Gazprom CEO Alexei
Miller said.
Sources close to the matter said Monday that Russian gas supplies to
Turkey have been running at around 81 million cu m/d since Friday,
with around 48 million cu m/d -- or 59% -- sent via the Blue Stream
pipeline under the Black Sea.
The remaining 33 million cu m/d, or 41%, is entering Turkey via the
western route through Ukraine.
Gazprom's most recently stated target of total exports to Europe and
Turkey in 2016 is 170 Bcm, which would be an all-time high.
But Miller has said a cold winter in Europe would see that level
exceeded.
Gazprom -- while not giving absolute volumes -- broke down the
year-on-year supply growth for some of its European customers for
January-October.
Russian gas supplies to Germany -- its biggest buyer -- rose by 7.5%
(or 2.75 Bcm) in the first 10 months of 2016.
That implies growth in October alone of 0.85 Bcm year on year given
that supplies in January-September rose 1.9 Bcm on the same period
of 2015.
Other countries saw significant increases, including the UK (54.6%),
France (20.4%), Austria (27.5%), Greece (47.3%), the Netherlands
(91.8%), Denmark (149.4%) and Poland (16.7%).
--Stuart Elliott,
stuart.elliott@spglobal.com --
Edited by Jonathan Fox,
jonathan.fox@spglobal.com
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