Gazprom boosts gas supplies to China: Says Company CEO, Holts delivery to European countries

Vinayak Barot

New Delhi: A Russian majority state-owned multinational energy company, Gazprom said, Gazprom managed to increase gas deliveries via the Power of Siberia to China by 60% in January-August. “We are consistently increasing supplies via the Power of Siberia gas pipeline to China. And this year, we have several times updated the record for daily gas supplies over contractual obligations in terms of daily contractual quantities. Our gas supplies to the Chinese market in eight months of 2022 compared to 2021 grew by 60 percent,” the company’s CEO said Alexey Miller.

Miller said, Gazprom will fulfill its obligations to supply gas to China in 2023, which needs more and more gas. A new resource base has also been prepared to increase supplies – gas from the Kovykta field will begin to flow in the Power of Siberia gas pipeline before the end of the year. The holding has also already begun to develop a design and estimate documentation for the Far East gas supply route to China.

“Until the end of the year, we will be celebrating a very important, significant event. This is the beginning of the flow of gas from the Kovykta field to the Power of Siberia gas pipeline. We are already completing the linear part of the Kovykta-Chayanda and, without a doubt, all contractual obligations for 2023, which we have to our Russian consumers and to our Chinese partners, to increase the volume of gas supplies to China, we will fully fulfill it,” he added.

Miller recalled that the eastern program is largely aimed at expanding export opportunities and increasing gas supplies to the Chinese market. According to him, the Chinese market is the most dynamic in the world, and over the next 20 years, the increase in gas consumption in China will be 40 percent of the growth in world gas consumption.

However, on the other side, Russia’s state-owned energy firm Gazprom halted gas supplies via the Nord Stream 1 pipeline to Western Europe on Wednesday for three days.

The energy giant said due to maintenance on Nord Stream 1 there would be no gas flow to Germany between August 31 and September 3. It said that there is “necessary” work at a compressor station that needed to be carried out after “every 1,000 hours of operation.”

Germany, which is heavily dependent on Russian gas, has accused Moscow of using energy as a “weapon.” Russia insists the disruptions are due to sanctions following its war on Ukraine.
When asked about the resumption of gas supplies, Russian government spokesman Dmitry Peskov said “there is a guarantee that, apart from technical problems caused by sanctions, nothing interferes with supplies.”

Western capitals “have imposed sanctions against Russia, which do not allow for normal maintenance, repair work,” he added.

German Economy Minister Robert Habeck said earlier this month said that Nord Stream was “fully operational” and refused Moscow’s claims of technical issues.

After sanctions were imposed on Russia following Moscow’s “special military operation” in Ukraine, Russia has also cut off supply to Bulgaria, Denmark, Finland, the Netherlands, and Poland completely, and reduced flows via other pipelines.

“Russian President Vladimir Putin is using energy as a weapon and has put Europe on the brink of an energy crisis with skyrocketing prices,” Danish Prime Minister Mette Frederiksen said.

This disruption comes at a time when the energy market is already strained and wholesale gas prices are soaring over 400% since last August. Gazprom had earlier stopped supply for 10 days, citing maintenance efforts for Nord Stream 1 in July.

But in contrast, the current maintenance work was announced less than two weeks in advance and is being carried out by Gazprom, not Nord Stream AG.

The reduced flows via Nord Stream are putting additional pressure on European countries as they race to fill vital gas storage facilities before winter, fearing Russia might halt flows altogether.

With winter months looming, consumers in Europe are wary of huge power bills. Countries such as France have warned that rationing is a possibility. EU leaders have appealed to citizens to cut down on their energy usage.

Many Europeans are voluntarily cutting their energy consumption, limiting their use of electrical appliances, and showering at work to reduce costs. European companies have also taken steps to slash their energy usage.