• 1 hour UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 5 hours LNG Glut To Continue Into 2020s, IEA Says
  • 7 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 10 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 12 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 14 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%
OPEC Seeks Help From U.S. Shale

OPEC Seeks Help From U.S. Shale

OPEC’s secretary general has asked…

LNG Becomes A Buyer’s Market

LNG Becomes A Buyer’s Market

A continuous growing supply of…

Gazprom’s European Influence Is Fading As Poland Sees First U.S. LNG Imports

LNG

European imports of U.S. LNG could significantly cut into Gazprom’s dominance on the European gas market, Poland’s minister in charge of strategic energy infrastructure Piotr Naimski said on Monday, just days before his country welcomes its first U.S. LNG cargo.

Poland, like many European countries, currently meets most of its gas demand with imports from Russia’s gas giant, which says that its share of Europe’s gas consumption grew to a record high of 34 percent in 2016.

Due to increased production and export capacities LNG has become a global product. If appropriate decisions are taken, then Gazprom could be excluded or blatantly reduced when it comes to its supplies to Europe,” Naimski said at an LNG industry conference today, as quoted by Reuters.

Commenting on the different pricing for natural gas in the U.S. and Europe, Naimski said:

“The price offered in future contracts by potential U.S. exporters is linked to the Henry Hub in the U.S., and not, for example, to the London market. This is a problem for Europe - it means that to balance the price with the European one, the U.S. exporters would have to cover the transport costs.”

Poland is trying to diversify its gas supplies, and its company Polish Oil & Gas Company (PGNiG) has a strategic agreement with Qatargas for LNG supplies.

Poland will soon receive the first U.S. LNG cargo to a country from Central and Eastern Europe—Cheniere Energy is expected to deliver the cargo in the first half of June, under a deal with PGNiG.

In another first, the first ever U.S. LNG cargo to Northwest Europe, the Arctic Discoverer tanker set sail from Sabine Pass in the U.S. on May 21, and is expected to arrive at the Rotterdam terminal Gates on June 7.

According to the EIA, the U.S. is set to become a net exporter of natural gas on an average annual basis by 2018, due to declining pipeline imports, growing pipeline exports, and increasing LNG exports. By 2021, four LNG export facilities that are currently under construction are set to be completed.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • M B Kent on May 30 2017 said:
    In a business transaction - price is certainly important, but transient. Trust and integrity are paramount, and earned from a lasting relationship.
  • Naomi on May 30 2017 said:
    The occasional purchase of USA LNG @ $4/mmcf keeps the Gazprom price at $3.50/mmcf. The USA Gulf has more gas than Russia, and no exploration required. US banks continue low sunk cost finance of LNG terminals and shipping until Russia abandons Ukraine and Crimea. President Obama licensed a hundred prospective LNG terminals with capacity to supply all of Europe. East Ukraine and Crimea are scorched Earth. Russians are hungry. Putin is begging for investment donations. What a tangled web we weave when first we practice invasion of NATO.
  • Chris77 on May 30 2017 said:
    "{Gazprom's} share of Europe’s gas consumption grew to a record high of 34 percent in 2016."

    In which amount the Russian gas, received by Belarus as a friendly subsidy from Russia and sold by Belarus, not Russia to Europe, is not included. If included, the Russian share in Europe's gas consumption will be above 40%.

    Let me not comment the fantastic Polish dreams of being supplied by American LNG. That gas needs ""just" to be cooled, compressed, liquified, carried over the Ocean, then gasified again, and - voilá! - they have the same gas as from Russia, just the price will be twice, three times as much...

    ha ha ha
  • Pampita on May 29 2017 said:
    Let's be serious two seconds, ok ?
    Because russophobic Poland have a knee-jerk reaction and buy a small and costly amount of US gas doesn't mean Gazprom is fading...
    US shale gas is twice the price of Russian gas, the reserves are fading and the transportation takes a long time. No grown up European government will ever massively buy US shale gas.

Leave a comment

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