• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 52 mins 60 mph electric mopeds
  • 7 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 7 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 6 hours China to Impose Dictatorship on Hong Kong
  • 28 mins Why 2030-Isn.t-The-Magic-Year-For-Electric-Vehicles
  • 2 hours Russia loses its chance to capture the EU gas market
  • 8 hours Payback Time: Republican Senators turn the tables on Democrats. The difference is the Republican investigations are legit.
  • 15 mins So the President is on that Hydroxy
  • 12 hours Iran's first oil tanker has arrived near Venezuela
  • 1 hour DEFIANCE – There are More of Us Than Them
  • 7 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 5 hours Let’s Try This....
  • 20 hours Ventura County to Replace Natural Gas Generation with Battery Storage
OPEC+ Deal Could Collapse As Oil Prices Shoot Up

OPEC+ Deal Could Collapse As Oil Prices Shoot Up

Oil prices have risen quickly…

The Oil Rally Is Running On Fumes

The Oil Rally Is Running On Fumes

Oil prices rallied on Monday…

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