On Sunday, Russian Deputy Prime Minister (PM) Alexander Novak stated that Russia is willing to restart liquified natural gas (LNG) supplies to the European Union (EU) via the Yamal-Europe pipeline since “a gas deficit remains, and we have all capabilities to restore supplies.”
“For example, the Yamal-Europe pipeline, shut down over political motives, remains unused,” he added.
The Yamal and the Nord Stream 1 pipelines are Gazprom’s two major supply routes into Europe. However, daily shipments through the Yamal pipeline across Belarus and Poland to Germany reportedly dropped from 27 million cubic meters (mcm) to 4.7 mcm in December last year, thereby operating at a record low 4% of its total capacity.
Subsequently, in May, Russian gas supplies via the Yamal-Europe pipeline through Germany’s Mallnow point on the German-Polish border fell to zero, one day after G7 countries rejected Russian President Vladimir Putin’s demand for natural gas payments to be made in rubles.
Following the Russian invasion of Ukraine on February 24, the West imposed severe sanctions targeting the Russian economy that caused the ruble to fall to record lows. Thus, to offset the consequences, Putin demanded payment in rubles. However, before the G7 refused Russia’s demands, the Kremlin had warned of the consequences of not agreeing to the request.
Claiming that the EU market “remains relevant,” Novak also noted a demand for Russian gas there “with certainty.” In this respect, he revealed that Russia was “able to significantly increase LNG supplies to Europe this year” to 19.4 billion cubic meters (bcm) in 11 months this year, and is expected to reach 21 bcm by the year-end.
“So, we continue to view Europe as a potential market for our produce. It is clear that a wide-scale campaign has been initiated against us, which ended with sabotage against the Nord Stream pipeline,” he opined.
Russia can send natural gas to Pakistan and Afghanistan in long term: Deputy PM - @Dawn_News
— Capital Stake (@CapitalStake) December 26, 2022
Moscow is ready to resume gas supplies to Europe through the Yamal-Europe Pipeline and it can also send supplies to Pakistan and Afghanistan in the long term.#KSE100 #Dollar
Russia is also holding talks on increasing supplies through the TurkStream pipeline after a gas hub is created. “We actively work with the countries that will take part in this project, as well as with the consumers that require gas from Russia,” Novak stated.
Currently, the TurkStream pipeline runs at full capacity while the Ukrainian route supplies 42 million cubic meters (mcm) per day or about one-third of the transit volume mentioned in the contract.
Additionally, Novak revealed that Russia has agreed to increase gas supplies to Azerbaijan, adding, “In the future, when they increase gas production, we will be able to discuss swaps.” Furthermore, Russia is in talks about increasing gas supplies to Kazakhstan and Uzbekistan as well.
Novak also disclosed that Russia might send gas to Afghanistan and Pakistan through the infrastructure of Central Asia or in a swap with Iran.
The bottom is we cannot do it because we do not have the necessary #regasification and #pipelines in place and even if we did, there is not enough spare #LNG or growth in capacity out there which means #Europe will be buying exorbirant prices for that gas. pic.twitter.com/zDwjv18qiM
— Gerard Reid (@gerardreid14) December 26, 2022
Moreover, he underlined that “it is impossible” to replace or cut off Russia from the global energy market. Saying that it is the world’s biggest producer of energy, Novak stated Russia supplies 20% of the world’s gas exports, over 20% of oil, and is the third-largest coal exporter.
“It is obvious that energy consumption will be only growing in the future, so I cannot imagine how the world economy will do without our energy resources,” he emphasised, adding that Moscow also controls petrochemicals and hydrogen while developing traditional and new energy industries, and has a unique expertise in the nuclear energy sector.