TurkStream gas deliveries to Europe drop by 25% after license revocation

In late September, the supply of gas to the European Union (EU) via TurkStream dropped by a quarter compared to the end of August after the license was revoked by the Netherlands. 

Vedomosti reports referring to the data of the European Network of Transmission System Operators (ENTSOG) that on September 29 about 32 million cubic metres of gas arrived in the EU through Strandzha 2/Malkoclar, which is located on the border of Turkey and Bulgaria. This is about 25 per cent less than at the end of August. At the same time, the sharp decline in exports began as early as September 17. Then the daily supply volume decreased to 35.2 million cubic meters. And already on September 29, the license of South Stream Transport B.V. was prematurely revoked.

Market experts agreed that the decline in supplies was due to fewer bids from EU customers. In addition, there was a force majeure situation in the market, so it is difficult to predict further developments for the time being. However, the withdrawal of the license will make maintenance and repair of the pipeline more difficult.

Analysts believe that there are now more bids in the European market for LNG amid high natural gas prices. However, the approaching heating season and competition with the Asian market could cause exports to Europe to increase again.