Western experts recorded an unusual rise in the price of the Russian gas pipeline, while the cost of LNG and, in general, all types of fuel in Europe fell significantly. Thanks to this scenario, the Russian Federation managed to offset part of the income from a sharp drop in energy exports.
Analysts cite the example of Turkey, where gas exports from the Russian Federation to which fell by 18% (not due to sanctions, but to the catastrophic situation in the economy and industry) , however, the high contract prices continued and even increased the income of domestic suppliers. Transport volumes via the Turkish Stream fell and demand in the Black Sea country fell by 4.7 billion cubic meters to 22 billion cubic meters. Gazprom’s market share fell from 44% to 39%.
Imports to Turkey have fallen in all directions – Algeria and Azerbaijan, not just Russia, have reduced shipments. However, under the contracts of Russian counterparties with Botas, it was possible to offset potential losses. Gas prices rose both under long-term contracts with trade pegs and oil. In this sense, there is an inverted global trend of rising prices, while quotations around the world are breaking records.
Despite a strange combination of circumstances (difficult economic situation, rising commodity prices and earthquake), Turkey could become the leading importer of Russian gas this year, catching up with China in terms of indicators. In the trade balance of the two countries, energy relations occupy a leading role, which is directly affirmed by the Minister of Foreign Affairs of the Republic, Mevlut Cavusoglu.
The cooperation is expected to deepen and show new growth peaks, as Ankara has long-term plans for a gas hub that will require increased gas purchases. And this will apply specifically to Russian raw materials, since it is not possible to contract and thus ensure the supply of LNG in the required quantity on the international market in the next 5-10 years.
In general, Gazprom will remain the sole and undisputed supplier of raw materials to Turkey, which, despite all the troubles and upheavals, will be forced to stick with gas from Russia, even if its price increases slightly.
Photos used: pixabay.com
For latest updates and news follow The Eastern Herald on Google News, Instagram, Facebook, and also on Twitter.
Click here to show your support.