In July 2024, Gazprom achieves its highest level of gas exports to Europe for the year.
Average daily exports are up 5.7% on the previous year and 12% on June.
This increase is attributed to the end of maintenance on the Turkstream pipeline, linking Russia to Turkey, and to increased demand to fill reserves before winter.
Recovery in export volumes
The data show that average daily exports climbed to 91.5 million cubic meters (mcm) in July, compared with 86.6 mcm in July 2023 and 81.8 mcm in June 2024.
This trend marks a recovery after a period of significant decline.
The end of maintenance work on the Turkstream pipeline contributed to this rebound, facilitating an increase in export volumes. In 2023, Gazprom recorded a net loss of almost $7 billion, the first since 1999, due to a reduction in export volumes and a fall in gas prices in Europe.
In 2022, the total volume exported to Europe was around 63.8 billion cubic meters (bcm), but this fell to 28.3 bcm in 2023, a decrease of 55.6%.
Price impact and strategic adjustment
Fluctuating world gas prices also influence exports.
Ronald Smith, analyst at BCS, points out that world prices had fallen significantly the previous year, but this year they are stabilizing and sometimes rising.
This stabilization of prices makes Gazprom’s gas more competitive in Europe, encouraging a recovery in exports to levels close to the “new normal”.
The upturn in exports suggests a gradual return to a degree of stability after years of decline.
Seasonal demand in Europe and the end of pipeline interruptions play a crucial role in this positive trend.
Although current levels are still below the historic peaks of 2018-2019, when volumes reached between 175 and 180 bcm, the recent trend points to a normalization of export volumes.
