X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 2 hours U.S. Presidential Elections Status - Electoral Votes
  • 5 hours Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 2 days Interest article about windmills and waterwheels in Europe
  • 1 hour Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 15 hours Retired RAF pilot wins legal challenge over a wind farm
  • 2 days “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days Chance for (Saudi)Arabian peninsula having giant onshore Gas too?

Gazprom's Monopoly in the European Natural Gas Market Slips

Gazprom, the Russian state-owned natural gas giant that supplies Europe with most of its gas, has benefited from a monopoly of Russian exports which was intended to prevent competition between Russian firms pushing down the price of natural gas.

Natural gas prices are now falling on their own due to an abundance of LNG and a weak European economy. On top of that it seems as if the Kremlin may be allowing some form of competition to enter the market.

Energie Baden-Württemberg (EnBW), the third-largest electric utility in Germany, has signed an agreement with an unnamed Russian energy company for the supply of 2 billion cubic meters of natural gas, worth about €600 billion over the next 10 years.

Stock traders quickly identified that Novatek, Russia’s second largest natural gas company, will supply the gas, with Gazprom operating as the middleman to ship the fuel. Bank of America Merrill Lynch in Moscow advised their clients to invest in Novatek due to the indications that Gazprom’s monopoly is slipping. Shares in Novatek have increased by 8% already.

It is unknown exactly why the Kremlin is allowing another company to export gas to Europe. Experts suggest it may be an acknowledgement that Gazprom is not adjusting well enough to the changing global gas industry, or just to acknowledge the competition that Novatek offers to Gazprom in Russian energy politics.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

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