BAKU, Azerbaijan, Aug.5. The combined impact of higher production and higher imports from Norway and Azerbaijan to Europe in Q2 2022 more than offset lower pipeline supplies from North Africa, resulting in a net year-on-year gain of 5.2 Bcm from those sources combined, Trend reports with reference to Oxford Institute of Energy Studies (OIES).
“The second quarter of 2022 has been a dramatic one for the European gas market. On the supply-side, the record volume of European LNG imports seen in Q1-2022 was slightly exceeded, meaning that LNG sendout in Q2 was around 10 Bcm (39 per cent) higher year-on-year. These increased LNG supplies were necessary to offset the 17 Bcm (45 per cent) year-on-year decline in pipeline imports from Russia. Elsewhere, the combined impact of higher production and higher imports from Norway and Azerbaijan more than offset lower pipeline supplies from North Africa, resulting in a net year-on-year gain of 5.2 Bcm from those sources combined,” reads the report released by OIES.
The report reveals that taken together, the net result was a year-on-year decline in total gross supply (excluding storage stock changes) of around 1.8 Bcm (1.5 per cent), from 119 Bcm in Q2-2021 to 117 Bcm in Q2-2022.
“However, the pricing and geopolitical environment is substantially different to that of Q2-2021. Prices are currently at exceptionally high levels, while record Spring storage injections took substantial volumes off the market. Uncertainties over continued Russian pipeline supply and a vastly greater exposure to the global LNG market – which is itself, already tight and exhibiting high prices – are generating European concerns over market balancing in the coming winter.”
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