Russia To Restart Gas Supplies To Europe Via Yamal-Europe Pipeline -Novak

Summary

• Moscow set to resume gas supplies via Yamal-Europe Pipeline
• Russia considering additional supply via Turkey
• In talks to increase supplies to Kazakhstan, Azerbaijan, Uzbekistan
• Moscow may send gas to Afghanistan, Pakistan in the long term

Moscow is ready to restart gas supplies to Europe via the Yamal-Europe Pipeline, Russian Deputy Prime Minister Alexander Novak told state TASS news agency.

“The European market remains relevant, as the gas shortage persists, and we have every opportunity to resume supplies,” TASS quoted Novak as saying in remarks published by the agency on Sunday.

“For example, the Yamal-Europe Pipeline, which was stopped for political reasons, remains unused.”

The Yamal-Europe Pipeline normally flows westward, but has been largely reversed since December of last year as Poland restrained from buying from Russia in favor of relying on stored gas in Germany.

In May, Warsaw ended its agreement with Russia, after previously rejecting Moscow’s demand that it pays in roubles.

Russian supplier Gazprom (GAZP.MM) retaliated by suspending supply and said it would no longer be able to export gas via Poland after Moscow placed sanctions against the company that owns the Polish section of the Yamal-Europe pipeline.

Novak also restated that Moscow is considering additional gas supplies through Turkey after construction of a hub there.

He also said that Moscow estimates it will have exported 21 billion cubic metres (bcm) of liquefied natural gas (LNG) to Europe this year.

“This year we were able to significantly increase LNG supplies to Europe,” Novak said. “In the 11 months of 2022, they increased to 19.4 bcm, by the end of the year 21 bcm are expected.”

In a comprehensive interview with the TASS agency, parts of which have been published throughout the weekend, Novak also said that Russia has struck an agreement with Azerbaijan to boost gas supplies for its domestic consumption.

“In the future, when they increase gas production, we will be able to discuss swaps,” he said.

Moscow is also considering higher supplies of its gas to Uzbekistan and Kazakhstan, he said.

Novak also said that in the long term, Russia can ship its natural gas to the markets of Pakistan and Afghanistan, either in a swap from the territory of Iran, or using the infrastructure of Central Asia.