The Newest Battlefield In The European Gas War | WHAT REALLY HAPPENED

The Newest Battlefield In The European Gas War

Authored by Viktor Katuna via OilPrice.com,

In the first days of June 2020, the Greek industrial holding Mytilineos announced that it had concluded a long-term contract with Gazprom’s commercial arm.

The onset of continuous US LNG deliveries to Greece bears a much harsher reputational blow to Russian energy interests than Qatari or Algerian supplies.

Across the planet LNG prices in May-June 2020 have dropped to unprecedentedly low levels – landed seaborne prices still remain below $2 per MMBtu, compelling rivals of LNG to counteract the trend. In the vanguard of those affected is the Russian pipeline gas monopoly Gazprom which expects its exports to drop from the peak of 199-200 BC m per year attained in the last 2 years to some 167 BC m in 2020. Pipeline gas supplies to Europe seems somewhat paralyzed currently with little to no availability of ramping up exports despite producers curbing natural gas production concurrently to oil. With this in mind, Gazprom is looking to beat its competitors on their own field, having no liquefaction facility that could realistically target European customers.

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