Gazprom’s EU Strategy Is a Dead End

on 12/06/2016 - 01:56 pm

Article by Mikhail Krutikhin. Original article appeared on Carnegie Moscow Center
The main obstacle to energy negotiations between Russia and the EU is the clash between their perceptions of energy security. Moscow claims that the biggest threat to European energy security is Ukraine’s unreliability as a gas transit country, while Brussels believes the construction of new Russian pipelines circumventing Ukraine will do nothing to improve the EU’s energy security.
Russian oil and gas analysts, spurred on by the Ministry of Energy, are trying to create the impression that energy negotiations between Russia and the EU are moving full steam ahead. At conference ...

Fully-fledged Southern Gas Corridor by 2020: European Gas Race between Iran and Turkmenistan

on 11/29/2016 - 12:49 pm

Iran, together with Turkmenistan, possesses almost 28% of the world’s total proven natural gas reserves. When the imminent lifting of Western sanctions takes place, Iran, holder of the world’s largest natural gas proven reserves, will do everything to re-establish its export of hydrocarbons (oil&gas) to Europe, in order to spur the nation’s sanctions-battered economy’s recovery, although this contrasts with Iran’s recent statement that they will not sell gas to Europe, to soothe the Russians, who are now needed for their political and economic plans.
Nevertheless, it is very possible that the EU will not need, or simply, will not be able to purchase ...

Long-term Pipeline Gas Supply Contracts: Towards More Flexibility and Spot Indexation?

on 10/04/2016 - 05:05 am

Cedigaz has released its updated long-term pipeline gas supply contracts in Europe database. 
Unsurprisingly, given the present context of uncertain demand and looming gas bubble, with Europe as a whole well (over?) contracted in long-term supply contracts, the present update shows little difference from the previous, one-year old version. Indeed, no new contract was added to the database.
Given the ever growing market uncertainty, the buyers focus on increasing the flexibility of their existing contracts (for instance by lowering the minimum TOP volume or shortening the renegotiation periods) and pressing for more gas indexation (which usually comes with reduced volume flexibility).

Brexit and the impact on the UK Energy market

on 06/28/2016 - 08:53 am

U.K. natural gas is one of the few commodities world-wide which is actually being boosted by the decision to leave the European Union but European gas markets are set for a week of uncertainty as traders process the impact of the UK’s decision to leave the European Union. On top of that, the Dutch government has proposed cutting the production cap for the country’s largest gas field, creating something of a perfect storm for European gas market participants to deal with.
U.K. natural gas is arguably the most important natural gas hub globally. It has the highest trade volume of any gas hub in Europe and is used to regulate supply across the continent, with the U.K. being ...