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Putin orders more gas for Europe for next month, sending down price

29 October 2021
Furnizare
Energynomics

President Vladimir Putin ordered Gazprom PJSC to start refilling its European gas-storage facilities next month, sending prices lower as long-awaited additional Russian supplies could soon be on the way.

The Russian gas giant was told to boost inventories at its facilities in Germany and Austria starting Nov. 8, when domestic storage sites will be full, Putin told Gazprom Chief Executive Officer Alexey Miller on Wednesday. The move will “create a more favorable situation on the European energy market,” the Russian president said at a meeting broadcast on state television, according to Bloomberg.

Gazprom has so far pumped very small amounts of gas into its European storage facilities and the order could help boost supplies in the continent. The increase doesn’t necessarily mean Russia is relenting to pressure to bail Europe out of an energy crisis. Reserves will be stored at Gazprom’s own facilities and the move comes as Russian production is set to increase anyway.

Europe started the heating season with the lowest inventories in more than a decade as Russia kept supplies capped, while cargoes of liquefied natural gas were redirected to Asia to meet soaring demand there. While Russia has made it clear that it could send more gas if it gets approval for its controversial Nord Stream 2 pipeline, Europe’s top supplier also faces a crunch of its own.

Russia has to pump more gas than usual into its own storage sites after a bitter winter left inventories depleted.

Autor: Energynomics

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