UPDATE 1-Russian pipeline gas and LNG exports to Europe up 18-20% in 2024, Novak says

And Russian gas is the most cost-efficient, both in terms of logistics and the price," Novak was cited as saying. The increase was from a very low base in 2023, when Russian pipeline gas supplies to Europe plummeted by 55.6% to 28.3 bcm as Moscow's relations with the West sharply deteriorated due to the Ukraine conflict.

Total exports of Russian gas to European countries have so far been 18-20% higher this year than in 2023, the Interfax news agency cited Deputy Prime Minister Alexander Novak as saying on Wednesday.

In January-November, supplies of both pipeline gas and liquefied natural gas (LNG) exceeded 50 billion cubic metres, Novak was quoted as saying. "Despite all the statements and sanctions pressure because gas is a highly ecological product it is in demand. And Russian gas is the most cost-efficient, both in terms of logistics and the price," Novak was cited as saying.

The increase was from a very low base in 2023, when Russian pipeline gas supplies to Europe plummeted by 55.6% to 28.3 bcm as Moscow's relations with the West sharply deteriorated due to the Ukraine conflict. Supplies are expected to recover to around 32 bcm this year, according to Reuters calculations.

Russian pipeline gas exports to Europe face serious challenges. A five-year gas transit deal between Moscow and Kyiv that has seen Russian exports flow via Ukraine despite the war expires at the end of the year and Ukraine has said it won't renew the arrangement.

Around half of Russian gas to Europe flows via the Ukrainian route. The rest is supplied through the TurkStream pipeline on the bed of the Black Sea. Supplies of Russia's sea-borne super cool LNG have been on the rise however with Europe taking around a half of such exports.

The EU has no imminent plans to stop buying Russian LNG, but has said it will try to wean itself off Russian gas by 2027 thanks to rising exports from Norway, the United States and Qatar.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)