Baxia Markets
October 20, 2021

Natural gas crisis continues as Russia opted against supply increase

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On Monday, the results of a highly anticipated auction revealed that Russia's state-owned gas giant Gazprom had not reserved any extra gas transit capacity for November, either through the Ukrainian pipeline system or through lines into Western Europe via Poland. Gazprom has only scheduled 30 million cubic meters per day on the Yamal-Europe line, which has a capacity of 86.5 million cubic meters per day, which is comparable to September's capacity, and has not booked any volumes via Ukraine.




Efforts to prepare the Texas natural gas sector ready for another major winter storm like February's have had mixed results, with independent experts reporting little sign of businesses raising investments to weatherize their facilities against cold weather. According to Randall McCollum, a senior vice president at the research firm Wood Mackenzie who follows the gas business, no natural gas producers in Texas have made major efforts to insulate their wells and other equipment from the cold. "I really doubt they'd spend the money on it since it's not cost effective for a one-time event," he said.


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