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Russia Exports to Turkey, SE Europe Squeezed by LNG and Azeri Gas

Russia Exports to Turkey, SE Europe Squeezed by LNG and Azeri GasRussia Exports to Turkey, SE Europe Squeezed by LNG and Azeri Gas

Russian gas exports to Turkey and eight other southeast European nations fell by more than a quarter in the first half of 2019 as cheaper liquefied natural gas and new Azeri supplies helped the region reduce reliance on Russia.
Russian exports to Turkey, the biggest regional market, fell 36% compared to the first half of 2018, while exports to Greece and Bulgaria dropped 12.7% and 17.4% respectively, data published by Russia’s Gazprom showed.
Low LNG prices, driven down by sluggish spot demand in Asia and rising output particularly in the United States, as well as the expansion of gas output and pipeline capacity from Azerbaijan, helped some regional nations diversify suppliers, Reuters reported.
Gazprom’s exports to the nine regional states fell 27% to 14.2 billion cubic meters from 19.5 bcm a year earlier, the figures published by the Russian energy giant showed.
“Low LNG prices are accelerating the trend of reducing Russian gas dependency,” said Alex Lagakos, head of Greek Energy Forum, a think-tank focusing on Greece and regional markets.
Dutch front-month contract, a benchmark for spot LNG delivered to Europe, averaged at $3.6 per million British thermal units this summer, about half Gazprom’s price for gas supplied to Turkey, a Turkish gas market source said.
Turkey imported 8.1 bcm from Gazprom in the first half of this year, down from 12.7 bcm a year earlier. Its reliance on Russian supplies fell to 35% of its needs from 49%.
Turkey’s gas imports from Iran held almost steady, while imports from Azerbaijan surged 43% in the period, after the launch of the second stage of BP’s Shah Deniz gas field in the Caspian Sea and the Trans-Anatolian Natural Gas Pipeline run by Azerbaijan’s SOCAR last year.

 

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