• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 3 hours One Last Warning For The U.S. Shale Patch
  • 14 hours Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 6 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 11 hours Chile Tests Floating Solar Farm
  • 51 mins Poll: Will Renewables Save the World?
  • 3 hours China's E-Buses Killing Diesel Demand
  • 22 hours New Rebate For EVs in Canada
  • 3 hours Trump sells out his base to please Wallstreet and Oil industry
  • 13 hours Biomass, Ethanol No Longer Green
  • 13 hours Trump Tariffs On China Working
  • 1 day Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day The Political Debacle: Brexit delayed
  • 20 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 15 hours Read: OPEC THREATENED TO KILL US SHALE
Why This Oil Price Rally Has A Limit

Why This Oil Price Rally Has A Limit

While oil markets are tightening…

Gazprom To Hike Gas Prices For European Markets

Natural Gas

Gazprom will increase the price it charges for its natural gas in the European Union this year, to US$180-190 per 1,000 cubic meters, Deputy Chairman Alexander Medvedev told media at an event in Singapore, adding that Europe remains a priority market for the company. To compare, last year’s average price of Gazprom’s gas for Europe was US$167 per 1,000 cu m, the lowest in 12 years.

Gazprom’s market share in Europe rose from 31 percent to 34 percent two years ago, and it is not about to change much in the coming years, Medvedev also said. In fact, he predicted that Gazprom’s share will rise further to 35 percent. That’s despite efforts on the part of the EU authorities to diversify the sources of natural gas that supply the continent with the commodity.

The Russian giant’s efforts to keep its foothold in Europe are currently focused on Nord Stream 2 – an expansion of the existing pipeline that pumps gas to Germany via the Baltic Sea.

The project was stopped by Polish authorities, and there has been vocal opposition from the European Commission and Ukraine, which will see its gas transit income drop if Nord Stream 2 becomes reality, but Gazprom seems determined to go ahead despite it, supported by its European partners, which include Shell, Engie, OMV, and Wintershall.

Related: Cooking The Books? Saudi Aramco Could Be Overvalued By 500%

In fact, Medvedev also said at the event that Nord Stream 2 could only be stopped for political reasons, since it meets all EU technological standards. Nord Stream is designed to pump 55 billion cu m of natural gas to Germany annually.

What’s more, Gazprom is also considering using an alternative pipeline project, TAP, to increase its supplies for Europe. The Trans-Adriatic Pipeline was specifically planned to diversify the EU’s sources of gas by tapping Azeri gas. Alexander Medvedev said earlier this year, however, that Gazprom could use the pipeline under an auction system, which offers open access to any gas supplier.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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