Daily Management Review

Russian Gas Exports To Europe Are Decreasing In Response To Customer Demands


Russian Gas Exports To Europe Are Decreasing In Response To Customer Demands
On Thursday morning, Russian gas supply to Europe via the Yamal-Europe pipeline shifted course, flowing from Germany to Poland, while supplies via Ukraine were also reduced, all in response to customer requests.
After flowing westward overnight, gas flows turned to an eastward direction into Poland at the Mallnow metering point on the German-Polish border on Thursday morning, according to statistics from pipeline operator Gascade.
The move corresponds to shipper requests, with no requests for westward shipments for the rest of the day, according to the data.
According to news reports, Russia's Gazprom is continuing to send gas to Europe via Ukraine in response to consumer demand, which has declined to 105.4 million cubic metres (mcm) from 108.4 mcm the day before.
According to data from Slovakian operator TSO Eustream, nominations for flows into Slovakia from Ukraine via the Velke Kapusany border point were at 936,935 megawatt hours (MWh) per day on Thursday, down from 968,186 MWh/day on Wednesday.
On Thursday, flows to Germany via the Nord Stream 1 pipeline over the Baltic Sea were unchanged from the previous 24 hours, at 73,165,350 kWh/h.
The gas market is afraid that Russian gas supplies, which account for roughly 40% of total supplies, may be cut off as a result of new sanctions imposed by the West in response to Russia's invasion of Ukraine.
While the European Union has stayed away from punishing oil and gas so far, envoys are likely to adopt a ban on Russian coal that will take effect immediately.
Josep Borrell, a top EU diplomat, said the package might be passed on Thursday or Friday, and that the EU will also explore a Russian oil embargo.
Finland and Estonia are the latest European countries to announce their intention to stop receiving Russian gas by jointly chartering a floating LNG terminal.
Lithuania has already announced that it will no longer buy Russian gas. 
There are also doubts about how many countries will agree to pay for gas delivery in roubles beginning this month, as requested by Russia.
Companies buying gas from Russian producer Gazprom are awaiting advice from their respective governments, with Hungary becoming the first EU member country to indicate it is willing to pay in Russian currency on Wednesday.