EU Intake Of Russian Gas Remains High Amid Lower Wind Output

While the European Union looks for ways to reduce its imports of Russian gas, flows via Ukraine remain high, at 109 million cu m daily amid lower wind energy output.

Interfax reports, citing data from the Gas Transmission System Operator of Ukraine, that bookings for Thursday stood at 105.2 million cu m while today's booking are higher, at 105.8 million cu m. The numbers are in line with the long-term contract with Gazprom, which is for deliveries of 40 billion cu m of gas annually.

Wind generation, meanwhile, has been on the decline, according to the report. For the week to March 20, wind output made up 17 percent of Europe's energy mix, and this week this has fallen further to 8.4 percent.

The EU remains active in seeking alternatives to Russian gas, meanwhile. Earlier today, Brussels struck a deal with Washington for higher deliveries of liquefied natural gas, with the U.S. committing to supply an additional 15 billion cu m this year.

In a fact sheet on the news, the White House said that "The United States will work with international partners and strive to ensure additional LNG volumes for the EU market of at least 15 bcm in 2022, with expected increases going forward."

The European Union, at the same time, committed to stoke demand for natural gas.

The European Commission will work with EU Member States toward the goal of ensuring, until at least 2030, demand for approximately 50 bcm/year of additional U.S. LNG that is consistent with our shared net-zero goals," the fact sheet also said, noting that "prices should reflect long-term market fundamentals".

Gas prices in Europe slipped on the news of the EU-U.S. LNG deal but remain far above normal, at over $1,160 per thousand cu m. The price of gas under the month-ahead contract for March with Gazprom is lower than that, at $930 per thousand cu m, Interfax noted.

By Charles Kennedy for Oilprice.com

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