Gazprom loses Europe: LNG again threatens Russian gas

Gazprom has repeated its anti-record of 2010, supplied to the EU the lowest volume of gas over the last 20 years in 2014. The fall in prices following the oil prices gives the monopoly a chance to rectify the situation, but for a while Gazprom itself restricts exports, minimizing pumping through the Ukraine. If in the second quarter the company’s policy doesn’t change, it may cede the market share to suppliers of LNG, which is once again becoming a real competitor for Russian gas in the EU.

By results of 2014, Gazprom reduced its gas exports to the EU by 13.8% to 121.3 billion cubic meters, repeating the result of 2010, the worst in the last 20 years. Basically the fall was caused by the reduction of demand for gas in Europe by 11%, primarily due to the abnormally warm weather, but Gazprom has made its own contribution in it. According to the monopoly’s report under RAS for the fourth quarter, its attempt to stop reverse gas supplies to the Ukraine from Europe at the end of the year led to the fact that exports to countries, involved in reverse, to the Czech Republic, Slovakia, Austria and Hungary, fell by 40-60%.

But it's not just the reverse. On the whole, the export fell almost to all the EU countries, and most of all in those that are supplied through the Ukraine. Thus, the supply to Italy decreased by 14.4%, France - by 13.2%, Austria - by 24.5%, the Czech Republic - by 35%, Slovakia - by 19%. The countries that are supplied through the Yamal - Europe and Nord Stream pipelines showed the best results. The export to Germany, which is the largest consumer of Russian gas, declined by only 3.6%, to Poland - by 7%, and the supplies to the Netherlands and Denmark even increased.