• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 22 hours The United States produced more crude oil than any nation, at any time.
  • 6 days e-truck insanity
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 6 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 10 days Bankruptcy in the Industry
Armenia's Shift West Draws Ire from Moscow and Baku

Armenia's Shift West Draws Ire from Moscow and Baku

The European Union and United…

Oil Ticks Lower on EIA Inventory Report

Oil Ticks Lower on EIA Inventory Report

Crude oil prices moved lower…

Russian Gas Giant Gazprom Claims Europe’s Energy System Is Unstable

The European energy system is currently unstable and could face challenges and shortages, according to Russia’s state-controlled gas giant Gazprom, whose deliveries to Europe have slumped since the Russian invasion of Ukraine.    

“The fact that the systemic deficit has not gone away is manifested not only by the higher price level in 2023 compared to the pre-Covid years, but also by the persistence of a stable contango in the natural gas market,” Reuters quoted senior Gazprom managers Sergei Komlev and Alexander Shapin as saying in an in-house magazine.

“This price behaviour means that, according to market participants, the energy security system in Europe, built in an emergency mode, is unstable and faces new challenges,” Gazprom says.

At the end of the 2022/2023 winter heating season, Gazprom claimed that Europe would find it very difficult to refill its natural gas stockpiles ahead of next winter.

Just ahead of 2023/2024 winter, gas storage sites in the EU were 96% full as of October 1, according to data from Gas Infrastructure Europe. Europe hit its target to have storage 90% full by November 1 month in advance.  

This year, Gazprom’s exports to Europe have slumped and dragged the gas giant’s profits down this year compared to 2022. Gazprom has reported a massive drop in its first-half net profit as deliveries to Europe plunged compared to the same period in 2022 when Russia was still supplying pipeline gas to its European customers. 

The major drop in Gazprom’s gas deliveries to key customers was due to the halt of Russian pipeline gas exports to nearly all European countries. Weeks after the Russian invasion of Ukraine in early 2022, Russia cut off supply to Poland, Bulgaria, and Finland.

Then Gazprom started to reduce supply via the Nord Stream pipeline to Germany in June 2022, claiming an inability to service gas turbine maintenance outside Russia due to the Western sanctions against Moscow for the invasion of Ukraine. This was weeks before the sabotage of the Nord Stream pipelines at the end of September 2022, which definitively closed all pipeline gas routes of Russia’s gas to Germany.


By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on October 03 2023 said:
    The EU shouldn’t rest on its laurels. The fact that the EU’s storage sites were 96% full as of October 1 Just ahead of 2023/2024 winter doesn’t mean that things couldn’t change suddenly.

    A harsh winter could deplete the EU’s gas storage very quickly and shortages and high prices could make it extremely difficult to find supplies particularly in the face of stiff competition from China and the Asia-Pacific region.

    The EU will be forced to buy US LNG at exorbitant prices thus worsening further the state of its economy which is growing in 2023 at a mere 0.8%.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News