Gazprom's Gas Exports to Europe Rebound Amid Seasonal Demand Increase

Russian energy giant Gazprom reported its highest average daily natural gas supplies to Europe in July 2024, up notably from both June 2024 and July 2023. This rise was driven by the end of pipeline maintenance and increased seasonal demand. However, overall exports are still lower than peak levels in 2018-2019.

In a significant development, Russian energy titan Gazprom saw its daily average natural gas supplies to Europe reach this year's highest levels in July, marking a 5.7% increase compared to the previous year and a 12% rise over June 2024, according to Reuters calculations.

The uptick in Gazprom's export figures is attributed to the completion of maintenance on the Turkstream pipeline and a seasonal demand surge as utilities began stockpiling gas ahead of winter. Data from the European gas transmission group Entsog and Gazprom's daily reports show that average daily pipeline exports rose to 91.5 million cubic metres (mcm) in July from 86.6 mcm in July 2023 and 81.8 mcm in June.

Despite this rebound, Gazprom's annual exports remain well below the peak levels of 175-180 billion cubic metres (bcm) seen in 2018-2019. In 2022, Russia supplied around 63.8 bcm of gas to Europe, a figure that dropped to 28.3 bcm last year. The company reported a net loss of $7 billion in 2023, its first since 1999, exacerbated by an 88% increase in net loss in the first half of 2024 to 480.6 billion rubles due to declining gas prices in Europe.

(With inputs from agencies.)