• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 37 mins Despite pressure about Khashoggi's Murder: Saudi Arabia Reassures On Oil Supply, Says Will Meet Demand
  • 17 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 10 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 5 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 59 mins Why I Think Natural Gas is the Logical Future of Energy
  • 17 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 14 hours Iraq war and Possible Lies
  • 4 mins Satellite Moons to Replace Streetlamps?!
  • 10 hours Get on Those Bicycles to Save the World
  • 1 day Can the World Survive without Saudi Oil?
  • 1 day Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 12 mins Aramco to Become Major Player in LNG?
  • 11 hours EU to Splash Billions on Battery Factories
5 Companies To Watch In The Next Commodity Boom

5 Companies To Watch In The Next Commodity Boom

Rare element metals have become…

Why Is This Little-Known Element Up Over 300%

Why Is This Little-Known Element Up Over 300%

Element ‘’V’’, better known as…

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