Despite a busy week in…
Consumers will enjoy lower prices…
While dramatic talk of an end to Gazprom’s ‘monopoly’ in Europe steals headlines in the wake of the first LNG shipments to the continent, Germany reveals that it’s increased its gas imports from the Russian giant by 19 percent in the first four months of this year.
"It was noted the last year broke the record of supplies from Russia, which grew by 6.6 bln cubic meters (+17.1 percent). The upward trend continues to become stronger this year - 2 bln more cubic meters as compared to the last year (+19 percent) were already exported in the first four months of 2016," Gazprom said, referring to a meeting Gazprom CEO Alexei Miller and German Vice-Chancellor Sigmar Gabriel.
Related: 90% Off Sale On Offshore Drilling Rigs?
The two also discussed the Nord Stream 2 pipeline project as a way to meet the “growing demand for Russia’s energy resources in Europe,” Tass news agency reported.
"Creation of a new gas transportation main line will not merely improve reliability of supplies but will also contribute to development of the European gas market," Gazprom noted.
In 2015, Gazprom supplied 45.3 billion cubic meters of natural gas to Germany.
Gazprom supplies about one-third of the gas that Europe consumes. Norway supplies another quarter; so together, the two countries satisfy less than 60 percent of European gas needs. Gazprom is the single biggest player on the European market.
Related: Libya’s Oil Exports Could To Go To 0 bpd Within One Month
German Uniper, a subsidiary of E.ON, recently renegotiated a long-term gas import contract with Gazprom, reportedly “derisking” the contract going forward, according to Platts.
The renegotiation came after E.ON started arbitration proceedings in 2014 against Gazprom over pricing.
By Charles Kennedy of Oilprice.com
More Top Reads From Oilprice.com:
Charles is a writer for Oilprice.com