FAST FIVE: Russia Is Flaring Less And Keeping Natural Gas In The Ground
And this, according to the analysts Bloomberg talked to, is because Gazprom is simply producing less.
“Due to the uneven consumption patterns, Gazprom has to change its production significantly on monthly basis every year,” Vyacheslav Kulagin, a department head at the Energy Research Institute in the Russian Academy of Sciences, told Bloomberg.
This decline in Russian gas imports may be in line with the European Union's plans to wean itself off Russian gas fully, but it will mean a shortage while the weaning-off process is taking place.
According to a report by Rystad Energy, European countries are in for a gas shortage from next year to 2025 if Russia stops all deliveries of gas to the continent.
Production flexibility appears to be a winning demand management tool for a commodity whose demand patterns are highly variable depending on the season.