EU gas reserves strained amid bitter winter, cold Russia-EU relations

By Al Mayadeen English
Source: Agencies
11 Jan 2024 09:52
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Russian energy giant Gazprom continues to supply gas for transit to Western and Central Europe through the Sudzha pumping station in Ukraine.

Sudzha gas pumping station is seen, Sunday, Jan. 11, 2009 (AP)

In light of the stark European winter cold, the EU is grappling with a severe energy crisis as natural gas reserves in underground storage facilities continue to diminish, Interfax reported today.

Gas inventories fell to 85% capacity in early January, marking a stark decline from the 98% capacity reported in October. The cold weather gripping the region has spurred increased consumption of fuel for heating, putting an intense strain on gas reserves.

Renewable energy sources, particularly wind turbines, experienced a decline in December, meeting only approximately 15% of the EU's energy requirements (after it had covered one-third back in 2021). Experts reportedly anticipate a further reduction in renewable energy generation due to weak winds, increasing the dependence on natural gas for energy, thus putting extra strain on the gas reserves.

This natural gas crisis in Europe follows the onset of the NATO-Russia confrontation in Ukraine back in 2022.

Further complicating the situation, Interfax reported that Russian energy giant Gazprom continues to supply gas for transit to Western and Central Europe through the Sudzha pumping station, which remains the only gas line connecting Russia to mainland Europe after the closure of the Sokhranovka station in Ukraine back in 2022 and the terrorist attacks which sabotaged the Nord Stream pipelines.

The Ukrainian gas transmission system operator confirmed receiving an application from Gazprom to pump 42.4 million cubic meters through Sudzha into Europe on Tuesday – the maximum volume for this entry point, as per Gazprom.

Kiev declared force majeure on transits through Sokhranovka, claiming that it could no longer carry out technical oversight of the station. Gazprom, however, contends that there are no grounds for such a measure, asserting that Sokhranovka can operate normally.

With Sudzha now standing as the sole entry point for gas transit through Ukraine, the energy landscape in the EU remains precarious, with both weather conditions and geopolitical factors contributing to the ongoing challenges.

Russia diversifies oil market: makes increased revenues despite sanctions

Back in December, Reuters reported that since the start of 2023, Afghanistan has doubled its imports of Russian liquefied petrol gas (LPG), used for heat appliances and vehicles, while Russia's energy industry expands into markets beyond and away from the EU.

Specifically, Russia exported 176,000 tons of LPG to Afghanistan between January and November, which accounts for more than double the quantity they supplied over the same timeframe last year.

In the initial 11 months of the year, the total volume of Russian LPG exports to Central Asia saw a twofold increase compared to the corresponding period in 2022, reaching 390,100 tons. Approximately 50% of the LPG shipments originated from the gas processing facility located in the southwestern city of Orenburg, situated near the Kazakhstan border.

At the beginning of 2023, Russian Deputy Prime Minister Alexander Novak highlighted that the country's oil and gas revenues increased by 28%, amounting to 2.5 trillion rubles ($36.7 billion), despite sanctions imposed on it by the West.

Novak noted that in 2022, Russia's oil production increased by 2% reaching 535 million tonnes, while overall exports rose by 7%.

According to Novak, the coal industry witnessed an increase in production by 0.3%, despite the European embargo on Russian supplies, noting that 442 million tonnes of coal were produced in 2022.

The Russian Deputy PM also pointed out that Russia's Liquefied natural gas (LNG) production grew by 8% last year, reaching 46 billion cubic meters, and noted a rise of diesel and gasoline production by 6% and 4.3% respectively.

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?