Gazprom Exports to EU Hit Record

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Gazprom exported 190 billion cu m of gas to Europe this year, which is apparently a record. What I don't understand is how they step up the rhetoric but keep buying the gas. There are alternatives, after all, so break the chains, Europe.

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and, today Forbes came out with a story about the real war between Washington and Moscow not being over Ukraine, but over Europe as a whole, with news that Russia will allow Gazprom to sell LNG at any price in order to 'counter' the US.

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yep. payback time. Russia's livid about the Polish 5-year LNG deal with the US ...

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My understanding is that this is an actual regulation--a decree allowing Gazprom to sell LNG at any price. Before now, Gazprom could only sell gas at a regulated rate to local LNG producers. So they're not selling LNG, they're selling gas to LNG producers to make them more competitive against the US--to under cut the competition. 

 

 

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Even more ... Gazprom is planning to throw almost $14 billion (yes, billion) into pipeline routes to Europe and China in 2018 alone. As a state-run company, they're going to throw everything they have at this, and will win. 

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14 hours ago, Seleskya said:

yep. payback time. Russia's livid about the Polish 5-year LNG deal with the US ...

Doubt it. Poland compared to Germany and even more to China is, well, a tiny market. But I like the Poles' position: they are being consistent unlike the UK, accusing Russia of everything but buying their gas all the same. 

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Gazprom gas has a price in 2015-2017 about 4-6 $ per brittish termal unit- simple rational decision by european countries to buy cheapest and objectively in historical perspective rather cheap gas. So Europen gas consumption  rose for the first time in a decade

 A cost of production on russian fields is about 1 $ per MMbtu or even less - only Iran has such low cost fields.

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On ‎12‎/‎28‎/‎2017 at 8:12 PM, Seleskya said:

Even more ... Gazprom is planning to throw almost $14 billion (yes, billion) into pipeline routes to Europe and China in 2018 alone. As a state-run company, they're going to throw everything they have at this, and will win. 

$14 billion sounds like a big number, but it doesn't get you much as far as pipe is concerned.  A Permian to near-Texas Gulf Coast will cost you $2B, and that run is only 450 odd miles.  With good infrastructure (roads, etc) enabling access, etc.

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I thought Merky was not in favor of this pipeline deal, since it cut out the Ukraine? I honestly can't keep up with Gazprom's saga with Europe/Ukraine/US. 

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2 hours ago, Rodent said:

I thought Merky was not in favor of this pipeline deal, since it cut out the Ukraine? I honestly can't keep up with Gazprom's saga with Europe/Ukraine/US. 

Absolutely no way. Germany is simple biggest beneficiary of Nord Stream II - they will become gas hub for all of Europe and will have keys to european gas system. Simple one more powerful tool of political domination over  Europe. And of course cheaper gas for german industry so they really want it.

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Tante Angela is very much pro-Nord Stream 2. Germany is shutting down its nuclear power plants as well as coal plants but it needs huge amounts of energy and wind and solar just can't cut it, so more gas is the only way. She's pragmatic, that one. Except when it comes to immigration, that is.

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50 minutes ago, Marina Schwarz said:

Tante Angela is very much pro-Nord Stream 2. Germany is shutting down its nuclear power plants as well as coal plants but it needs huge amounts of energy and wind and solar just can't cut it, so more gas is the only way. She's pragmatic, that one. Except when it comes to immigration, that is.

Yes I agree with you. Germany also need to compesate a high labour cost in their industry in comparison with other countries with cheap raw materials- especially gas.

Edited by Tomasz

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