... actually decline and imported gas will increase, the competition is expected to heat up a lot after 2015 as more potential suppliers enter the market (e.g. Qatar). By 2020 the market will need an extra 50 bcm on top of the existing contracts as certain long-term contracts end, but supply 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 ...
"Quand la Chine s'éveillera, le monde tremblera"
Napoleon Bonaparte
The awakening of this old sleeping giant, or more accurately its re-awakening, has led much ink to be spilled and many keys to be worn-down. For many, this phenomenon was of great interest naturally due to China’s huge size and its equally large potential; especially, in contrast to the economically and politically stagnating West. However, for Russia, this re-emergence plays an exceptional role which...
... hence prices will rise as basic economics dictate. A further issue is reliable suppliers. For instance the EU has been aiming to agree 10 year long contracts with the Middle East, aside from this being a double-standard as it tends to avoid Russian long-term contracts by saying short-term hub trading without a fixed price is the future, the issue remains that this is not a safe partner (e.g. Arab Spring). Unless a price level of $100-$120 per barrel is reached, Saudi Arabia could fall into political ...