Low Russian gas imports threaten Europe

Europe is in grave danger due to the decline in Russian gas imports.

A report issued by the International Energy Agency on the gas market stated that Russia may reduce its gas production by approximately 8% on an annual basis in 2023.

Low Russian gas imports to Europe

Russia's pipeline gas exports to the Organization for Economic Co-operation and Development in Europe will decline by an estimated 50% (83 bcm) year-on-year in 2022, the lowest level since the mid-1980s.

While deliveries to Turkey decreased by 18% year on year, gas supplies to the European Union fell by more than half, resulting in a decrease of 78 billion cubic meters compared to 2021.

The International Energy Agency predicts that in 2023, if Russian gas shipments to the European Union remain at current levels, Russian pipeline gas exports to Europe will decrease by another 40%, to 30 billion cubic meters, compared to 2022.

The agency does not rule out a scenario that Russian gas supplies to Europe may stop completely, which will put additional pressure on the markets

The report indicated that gas production in Russia may decrease this year, according to estimates, by about 8%, or to 620 billion cubic meters, from 672 billion cubic meters in 2022.

Europe's compensation for Russian gas

Pipeline supplies from Norway increased by 3% (by 4 billion cubic meters), and gas supplies from Azerbaijan increased by 40% (by 3 billion cubic meters).

Gas supplies from North Africa decreased by 10% (by 4 bcm), while LNG imports by Europe increased by 60% to about 170 bcm, the highest level in the history of the European continent.

The report also predicted that in 2023 European countries may increase their imports of liquefied natural gas, but growth will be limited to only 3% due to the expected strong growth in demand in China.