• 2 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 7 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 7 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 10 days The Oil Rig Drilling 10 Miles Under The Sea
  • 10 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 10 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
Short Bets On Oil Spike Ahead Of OPEC Meeting

Short Bets On Oil Spike Ahead Of OPEC Meeting

Short positions in Brent futures…

Gazprom Deal With China May Cost Russia

Gazprom Deal With China May Cost Russia

Russia’s deal to sell an estimated $400 billion in gas to China may require an initial investment from Moscow.

Vladimir Putin, Russia’s president, told an energy convocation in Astrakhan, Russia, on June 4 that Gazprom, Russia’s government-owned gas company, may need several billion dollars worth of new capital to build pipelines and tap new fields to keep the gas flowing.

Putin gave no details, but indicated the money could come from the country’s gold and foreign exchange reserves.

Moscow estimates that the deal to sell gas to China over 30 years, beginning in 2015, could add between 0.3 and 0.4 percentage points to Russia’s economy. The central bank in Moscow says the economy is forecast to grow by only 0.5 percent in 2014.

Russia has said it intends to invest $55 billion to tap new sources of gas and build the pipeline to China’s border. The China National Petroleum Corp. will build the Chinese section.

Related Article: CNPC Deal Becomes Russia’s Gateway to Asian Gas Market

The deal with China is certain to help Russia’s economy, which has been sluggish because of a lack of overall reforms since the breakup of the Soviet Union and, more recently, economic sanctions from the West for its invasion and annexation of Crimea in March. Investing billions of dollars in the China project is expected to cause further strain.

In part because of these sanctions, the deal with China is a way for Russia to diversify its customer base if EU countries succeed in weaning themselves from their current heavy reliance on Russian gas. Still, May gas deliveries to Europe were up more than 10 percent over levels from one year ago, Gazprom CEO Alexei Miller said June 3.

But that may be because European clients are stockpiling gas for fear of a cutoff in case Ukraine cannot maintain its payments to Gazprom. EU countries get about 30 percent of their gas from Gazprom, and half of that is piped through Ukraine.

If Ukraine runs out of gas, it may tap its pipelines for gas destined for Western Europe, as it did in 2006 and 2009.

By Andy Tully of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News