No Resistance: Why Russian Gas Captures Europe So Fast
Over the past 2018, Russia delivered a record amount of gas to Europe and Turkey. Export volume amounted to 200 billion cubic meters. Now Russian gas makes up 37 percent of total consumption in Europe. But this is not the limit. This year, not only an increase in supply volumes is forecasted, but also an expansion of Russia's share in the European gas market.
This situation has arisen due to a significant increase in the demand of European countries for “blue fuel” amid weakening positions of other suppliers. This year Europe will need 5 billion cubic meters of gas more than in the past.
Earth's bowels against gas companies
Over the past half century, one of the main gas producers in continental Europe has been the Netherlands. It is in the Netherlands that the richest Groningen deposit is located. But gas production in the Netherlands, like in other EU gas producing countries, is rapidly declining. In each of these countries there are reasons for this, but in Holland the main thing is the increase in seismic activity caused by the pumping of gas from the bowels of the earth.
Although today the remaining reserves of the Groningen field are estimated at 800 billion cubic meters, the production of “blue fuel” is gradually being phased out. A sharp increase in gas production by Shell and ExxonMobil in 2008 led to a serious earthquake in the Netherlands, which caused significant damage.
Repeated attempts to increase gas production also lead to an increase in seismic activity. Mass protests of the population after the next major earthquake in January 2018 led to the curtailment of gas production in Groningen. If in 2009 more than 53 billion cubic meters were mined here, then by 2022 it is planned to reach the mark of 12 billion cubic meters per year.
Already, the Netherlands is not only unable to meet the gas needs of neighboring countries, but is not able to satisfy its own needs. Now Holland itself buys gas, although more recently it was a major exporter of “blue fuel”.
Troll will not help
We are not talking about any kind of “trolling”, because “Troll” is the name of a large Norwegian gas field. It is capable of producing 35 billion cubic meters of gas per year. More can be done, but the throughput of the pipeline coming from the Troll does not allow this.
Through the gas pipeline, fuel from this and other fields in Norway goes to Europe. Norway currently ranks second in terms of gas supplied to EU countries. Although Troll’s reserves are still very large, other Norwegian deposits are beginning to run low, which will lead to a noticeable reduction in supply.
Algeria did not please
Algeria is the third largest gas supplier to the EU after Russia and Norway. He supplies most of the gas to Spain and Portugal. In 2017, this African country delivered almost 50 billion cubic meters to Europe. Fuel is supplied both through pipes and in the form of LNG.
But now Algerians have warned their consumers that by 2022, supplies could completely stop due to growing domestic demand.
Can LNG solve the problem?
Gas enters Europe not only through pipelines, but also in liquefied form. Although much is said about European LNG in Europe and Russia, its share of the European market is negligible. It is about 4 percent. The United States would like to significantly expand its presence, but Europeans are not particularly happy with this prospect due to the high cost of American fuel.
The largest suppliers of LNG to Europe are Qatar, Nigeria and Algeria. For various reasons, Qatar and Nigeria cannot increase the volume of supplies and ensure growing European demand, while Algeria is going to completely curtail exports.
Ideal situation for Russian gas exports
Thus, an extremely favorable situation is developing in Europe for increasing gas exports from the Russian Federation. Russian Gazprom not only increases volumes, but also expands the geography of deliveries.
This is facilitated by the construction of new gas pipelines and Russia's entry into the global liquefied natural gas market. More and more consumers receive gas from Yamal LNG. For example, a contract has been signed for the annual shipment of 37 LNG carriers from Russia to Spain.
Thus, Russia will receive a significant increase in profits from the sale of "blue fuel". This will give our country considerable additional funds that can be used both for development. economics, and in the social sphere.
This situation has arisen due to a significant increase in the demand of European countries for “blue fuel” amid weakening positions of other suppliers. This year Europe will need 5 billion cubic meters of gas more than in the past.
Earth's bowels against gas companies
Over the past half century, one of the main gas producers in continental Europe has been the Netherlands. It is in the Netherlands that the richest Groningen deposit is located. But gas production in the Netherlands, like in other EU gas producing countries, is rapidly declining. In each of these countries there are reasons for this, but in Holland the main thing is the increase in seismic activity caused by the pumping of gas from the bowels of the earth.
Although today the remaining reserves of the Groningen field are estimated at 800 billion cubic meters, the production of “blue fuel” is gradually being phased out. A sharp increase in gas production by Shell and ExxonMobil in 2008 led to a serious earthquake in the Netherlands, which caused significant damage.
Repeated attempts to increase gas production also lead to an increase in seismic activity. Mass protests of the population after the next major earthquake in January 2018 led to the curtailment of gas production in Groningen. If in 2009 more than 53 billion cubic meters were mined here, then by 2022 it is planned to reach the mark of 12 billion cubic meters per year.
Already, the Netherlands is not only unable to meet the gas needs of neighboring countries, but is not able to satisfy its own needs. Now Holland itself buys gas, although more recently it was a major exporter of “blue fuel”.
Troll will not help
We are not talking about any kind of “trolling”, because “Troll” is the name of a large Norwegian gas field. It is capable of producing 35 billion cubic meters of gas per year. More can be done, but the throughput of the pipeline coming from the Troll does not allow this.
Through the gas pipeline, fuel from this and other fields in Norway goes to Europe. Norway currently ranks second in terms of gas supplied to EU countries. Although Troll’s reserves are still very large, other Norwegian deposits are beginning to run low, which will lead to a noticeable reduction in supply.
Algeria did not please
Algeria is the third largest gas supplier to the EU after Russia and Norway. He supplies most of the gas to Spain and Portugal. In 2017, this African country delivered almost 50 billion cubic meters to Europe. Fuel is supplied both through pipes and in the form of LNG.
But now Algerians have warned their consumers that by 2022, supplies could completely stop due to growing domestic demand.
Can LNG solve the problem?
Gas enters Europe not only through pipelines, but also in liquefied form. Although much is said about European LNG in Europe and Russia, its share of the European market is negligible. It is about 4 percent. The United States would like to significantly expand its presence, but Europeans are not particularly happy with this prospect due to the high cost of American fuel.
The largest suppliers of LNG to Europe are Qatar, Nigeria and Algeria. For various reasons, Qatar and Nigeria cannot increase the volume of supplies and ensure growing European demand, while Algeria is going to completely curtail exports.
Ideal situation for Russian gas exports
Thus, an extremely favorable situation is developing in Europe for increasing gas exports from the Russian Federation. Russian Gazprom not only increases volumes, but also expands the geography of deliveries.
This is facilitated by the construction of new gas pipelines and Russia's entry into the global liquefied natural gas market. More and more consumers receive gas from Yamal LNG. For example, a contract has been signed for the annual shipment of 37 LNG carriers from Russia to Spain.
Thus, Russia will receive a significant increase in profits from the sale of "blue fuel". This will give our country considerable additional funds that can be used both for development. economics, and in the social sphere.
- Sergey Kuzmitsky
- https://tchkcdn.com/
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