Russia has lost its status as the world's largest exporter of natural gas via pipelines, losing first place to Norway.
As Deutsche Welle reports, this follows from a report by the International Gas Union (IGU). According to these data, Norway exported 108.6 billion cubic meters of gas via pipelines last year, while Russian exports amounted to 103.5 billion.
Compared to 2005, the volume of gas exports via pipelines from Russia has more than halved, according to the IGU report. Analysts believe that this is due to a sharp decrease in supplies to Europe after the full-scale invasion of Ukraine in 2022.
It is important to note that Russia is actively reorienting its natural gas exports to China and other Asian countries. The authors of the report suggest that this strengthens Beijing's position in negotiations with the Kremlin, since China is the key market for potential future supplies via the Power of Siberia 2 gas pipeline, the construction of which has been discussed for many years. IGU notes:
„Power of Siberia 2“ is strategically important for Russia, as it is expected to restore export volumes lost after the withdrawal of „Gazprom“ from the European market. Progress in the discussion of the „Power of Siberia 2“ project however, remains limited.
According to analysts, the global natural gas market has become more flexible in recent years, allowing the industry to cope with the instability caused by the blockade of the Strait of Hormuz. Investment in LNG infrastructure, supply diversification and flexible trade agreements with suppliers have played a key role in this.
The IGU points to the Asian market, mainly China and India, as key drivers of future gas demand.