... will increase by 250 bcm in essence flooding the market and leading to old contracts to be renegotiated more robustly. Lastly, Europe’s notorious Third Energy Package is set to split gas transmission and storage from commercial activities. This will create a single trading hub as LUKoil points out for the entire area and as policymakers hope, eliminate major differences in prices, but as my older posts stress there are serious problems for certain suppliers in financially breaking-even with such setup.
Hot Subzero LNG
Over the last 10 years LNG-liquefaction capacities increased by 2.5 times around the world to 360 bcm. Major commissioning ...
... at 490 Mt. ES-2030 shows that by 2030 Russia aims to supply 20-25% of Asia’s oil from the current 6% – with China being the main consumer. Further, by 2020-2022... ... Russia, the energy superpower, sells no pipeline gas to Asia, and only marginally sells LNG from 2009. By 2020-2022 Russia ambitiously aims to reverse this trend by supplying... ... positive trend as Russia must diversify its eggs among more than one basket. Its main European market accounts for 90% of its export – which is a serious security issue...
... UK's urgency to form a hub market has led to issues for Russia, as its NBP hub (National Balancing Point Hub) influences European prices heavily against the more expensive pipelines. Althought, interestingly, UK's rush has recently backfired as it found it difficult to buy LNG due to prices being 2x higher in Asia, thus making UK an undesirable location for export of liquified gas for nations like ... ... prevented it to expand its energy sector, as it has just issued a new plan to invest $130 billion over 5 years in developing its oil and gas fields (See: Zawya); production has already increased 24% last year, so the developments of its "giant" ...
... – that is much more than $400 paid by Europe ($500 paid by Ukraine). Further, in 2016 US should begin exporting shale gas to Europe. Traditional energy suppliers will need to keep a close eye on these developments and they may well be forced to soon drop prices for natural gas to make shale LNG imports less appealing – all will depend on the final price which may well be very low as US shale is incredibly cheap ... ... traditional product must be competitive so it does not miss the gravy train which may well soon pick up speed.
Igor Ossipov
Oil & Gas Eurasia Correspondent, Oil/Diesel Broker and RIAC Blogger.
... will be no immediate Mayan apocalypse as some may have felt, but in today’s world things change quickly making one ponder – what must be done to stop any changes, how to adapt to them if they occur and what if sceptics are right?
«Oil and Gas Dialogue: Russian Gas in the European Market» Joint International Forum held at IMEMO RAN conference hall on 7th December 2012; moderated by Ivanova N. I., RAN Academic and Associate Director of IMEMO RAN, and Eric Dam, General Director of Energy Delta Institute.
Optimism ...
