Russia Chooses Not to Raise Natural Gas Supplies to Europe Despite Putin’s Pledge to Help

The auction results are regarded as a key signal to the market of upcoming volumes because they take place two to three weeks prior to the month in which natural gas flows.

SEATTLE (Oil Monster): Russia has opted against sending more natural gas supplies to Europe, curbing hopes that Moscow may ease its grip on the market shortly after President Vladimir Putin said the country would be prepared to help.

Highly anticipated auction results on Monday showed Russia’s state gas giant Gazprom had not booked additional gas transit capacity for November either through the Ukrainian pipeline system or lines into western Europe via Poland.

Gazprom booked only 30 million cubic meters per day on the Yamal-Europe route of 86.5 million cubic meters per day available for November, an amount comparable to that booked in September, and has not booked any volumes via Ukraine.

The auction results are regarded as a key signal to the market of upcoming volumes because they take place two to three weeks prior to the month in which natural gas flows.

Energy analysts say the results show Russia is in little hurry to boost supplies to the region and provides further evidence that the Kremlin is seeking to allow a smooth start-up of commercial flows via Nord Stream 2 — a contentious natural gas pipeline designed to deliver Russian gas directly to Germany via the Baltic Sea.

It comes shortly after Putin had suggested the country could provide additional supply to Europe at a time when millions of households are facing soaring winter energy bills.

Speaking to CNBC’s Hadley Gamble at Russian Energy Week on Oct. 13, the Russian president also dismissed suggestions the country was using gas as a geopolitical weapon as “politically motivated blather.”

Courtesy: www.cnbc.com