IEA Updates Outlook On Eurasia's Gas Production In 2024


(MENAFN- Trend News Agency) BAKU, Azerbaijan, July 22. The International Energy Agency (IEA) forecasts Eurasia's gas production to increase by 4 percent in 2024 to 864 bcm, Trend reports.

According to the agency's data, the region's gas output experienced a significant decline of 13 percent (or 130 bcm) between 2021 and 2023. This sharp decrease was primarily due to a dramatic drop in Russia's piped gas deliveries to Europe and declining upstream deliverability in Uzbekistan. However, the IEA's outlook indicates a recovery in the first half of 2024, with production increasing by 6 percent (or 25 bcm) year-on-year, driven by stronger domestic demand and higher exports.

According to the IEA, Russia's natural gas production fell by 15 percent (or 125 bcm) between 2021 and 2023, with 95 percent of this decline attributed to lower piped gas exports to Europe. Gazprom, Russia's monopoly pipeline exporter, saw a 30-percent (or 155 bcm) reduction in output during this period, while Novatek and Rosneft increased their production levels.

According to the IEA, Russia's natural gas production grew by over 7 percent year-on-year in the first half of 2024, with nearly 40 percent of this growth driven by stronger pipeline and LNG exports. Piped gas exports to China via the Power of Siberia pipeline grew by 35 percent year-on-year, with total deliveries expected to exceed 30 bcm. Piped supplies to Europe increased by over 5 percent year-on-year, supported by higher deliveries to the EU and Türkiye. Additionally, Russia began supplying Uzbekistan with around 9 mcm/d starting October 1, 2023. LNG output grew by nearly 10 percent (or 2 bcm) year-on-year, with Asia accounting for almost half of these exports. Domestic gas deliveries increased by 5.5 percent (or nearly 15 bcm) year-on-year, partly due to a colder-than-average first quarter and stronger thermal power generation.

Natural gas production trends varied across Central Asia, according to the IEA. Preliminary estimates indicate increased piped gas deliveries to China, primarily driven by higher output in Turkmenistan. Conversely, Uzbekistan's natural gas production declined by 5 percent (or 1 bcm) year-on-year in the first five months of 2024, reflecting deteriorating upstream deliverability and increasing reliance on imports, including from Russia.

The IEA's data shows that Kazakhstan's sales gas production grew by 4 percent (or 0.5 bcm) year-on-year during January-May 2024. Azerbaijan also saw a 4-percent (or 0.6 bcm) year-on-year increase in sales gas production in the first five months of 2024, supported by higher deliveries to Europe, which rose by 4 percent (0.4 bcm) year-on-year during the same period.

The IEA forecasts Eurasia's gas production to increase in 2024, although it will remain 10 percent below 2021 levels. Russia is expected to account for the bulk of this growth, with higher gas production supported by both domestic demand and exports.

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Trend News Agency

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