• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 2 hours Indonesia Stands Up to China. Will Japan Help?
  • 4 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 6 hours Trump capitulated
  • 9 hours Three oil pipeline projects inch toward goal-line for Canada
  • 14 hours The Libyan Oil in a Sea of Chaos, War and Disruptions
  • 1 day Trump has changed into a World Leader
  • 5 hours Gravity is a scam!
  • 7 hours Yet another Petroteq debt for equity deal
  • 3 hours US Shale: Technology
  • 21 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 17 hours OIL & GAS LOSSES! Schlumberger Posts $10B Loss in 2019
  • 1 day Beijing Must Face Reality That Taiwan is Independent
  • 1 hour Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 2 hours Which emissions are worse?: Cows vs. Keystone Pipeline
Could Renewables Overtake Coal In China?

Could Renewables Overtake Coal In China?

As China continues its long…

IEA Head: LNG, Regulation Helped Europe Save $8B On Russian Gas Imports

Natural gas pipeline

Due to competition from liquefied natural gas (LNG) and better market regulation, many European countries renegotiated their contracts for Russian pipeline gas supply in 2018, saving as much as US$8 billion on their Russian gas import bill, Fatih Birol, the Executive Director of the International Energy Agency (IEA), told Reuters on Friday.

“Because of the big challenge from LNG and better regulation, there was a lot of renegotiation of pipeline contracts and we estimate in 2018, Russian pipeline exports to Europe were $8 billion cheaper than they would have been with conventional oil indexation,” Birol told Reuters on the day on which the Paris-based agency released its Gas 2019 report.

Russia says that its pipeline gas exports is cheaper than American LNG, but countries in central and eastern Europe, such as Poland and Lithuania, are eager to wean off the Russian gas teat, which, they say, comes with political leverage for Moscow.

The price of LNG that the United States is exporting to Europe will stay competitive with Russian pipeline gas supplies in the long term, U.S. Secretary of Energy Rick Perry said earlier this week.

“This idea that somehow ... LNG can’t compete with pipelined gas is just false,” Reuters quoted Secretary Perry as saying on the sidelines of a conference in Slovenia, as the United States is authorizing additional volumes of LNG exports, calling its LNG “freedom gas.”

In its Gas 2019 report published on Friday, the IEA said that Europe’s gas consumption is expected to remain flat in the coming years, but domestic production is forecast to drop at an average rate of 3.5 percent annually due to the phase-out at the Groningen field in the Netherlands and falling North Sea production.

“This structural decline in domestic production, combined with the expiry of several long term pipeline contracts, opens opportunities for new sources of supply, including LNG,” the IEA said in the report.  

By Tsvetana Paraskova 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