Ukrainian Gas Transit: Still Vital for Russian Gas Supplies to Europe as Other Routes Reach Full Capacity

With European gas import demand having risen substantially since 2014, Gazprom has dramatically increased its sales on the European market. In Q1 2018, Gazprom reported record daily gas exports to Europe in late February and early March. This Comment addresses the question of how those volumes were delivered to the market, and the extent to which the infrastructure for delivery of those volumes was used,  highlighting that, in times of peak European gas import demand, full utilisation of the Nord Stream and Yamal-Europe pipelines left Ukraine as the only transit route with spare capacity. Until Nord Stream 2 and Turkish Stream are built, Gazprom will remain dependent on gas transit via Ukraine throughout the year, with Ukraine providing substantial flows in summer as European gas storage facilities are refilled, and a combination of significant flows and additional spare capacity in the winter peak demand period.

By: Jack Sharples

Latest Tweets from @OxfordEnergy

  • A review of a new OIES paper on oil market conditions and Saudi Arabia’ balancing act: The extent of dislocations i… https://t.co/n8EFPraNEj

    May 24th

  • Jonathan Stern on the latest Groningen earthquake: I think it is likely to accelerate even further the phase-out of… https://t.co/d1tGcAIAjp

    May 23rd

  • About 43% of the industrial gas demand in Europe could, in theory, decline in the 2020s as a result of decarbonizat… https://t.co/0iMqP4dCsd

    May 23rd

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.