• 1 min Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 2 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 4 hours Aramco In Talks With Chinese Petrochemical Producers
  • 5 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 7 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 13 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 18 hours Keystone Pipeline Restart Still Unknown
  • 22 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 1 day Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 1 day German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 1 day Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 1 day Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 7 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
Can Oil Majors Continue To Beat Estimates?

Can Oil Majors Continue To Beat Estimates?

As oil prices claw their…

Oil Survives Bearish Backlash

Oil Survives Bearish Backlash

Crude benchmarks posted steep losses…

Poland Says EU Going Soft On Gazprom Market Abuse

Gazprom

Poland is threatening to use all legal means possible to block the settlement, without fines, of an antitrust investigation targeting Russian Gazprom, which it feels the European Union is going soft on.

On Wednesday, Polish Foreign Minister Witold Waszczykowski said the country would use “all legal means” to block the EU’s terms for closing an anti-trust investigation into Gazprom.

The Polish foreign minister’s statements are in direct response to comments from EU competition regulators the day before, saying that because of the market abuse charges against it, Gazprom had made enough concessions.

Poland—along with other Eastern European countries—disagrees. They think Brussels is treading too lightly with Russia on gas.

The EU proposal would call for Gazprom to get rid of supply terms that prohibit importing countries from re-exporting Gazprom gas to third parties. That was a major sticking point.

The EU’s proposal would also see Gazprom link gas contracts to investments in pipelines.

Finally, it would ensure more equitable gas pricing for Estonia, Latvia, Lithuania, Poland and Bulgaria. These five countries are particularly sensitive to the Gazprom deal because they have almost no alternatives to Russian gas.

"We believe that the Russians will use their supplies as an instrument of political influence," Waszczykowski told reporters, adding that “it's a pity that our idea has not found an understanding in the European Commission.”

Related: Deciphering Today’s Oil Markets

Poland is seeking EU fines against Gazprom, not merely concessions for its abuse of the market.

Polish state-run energy company PGNiG has threatened to take the European Commission to court, and is calling the Monday settlement “highly insufficient”.

Our initial assessment shows that the commitments are insufficient to remove the negative impact of Gazprom competition breach in the CEE markets, including Polish market,” PGNiG chief executive Piotr Wo?niak told the Financial Times.

They may not make any significant contribution to change the situation that triggered the Commission action in 2012. We consider the Commission’s acceptance of those commitments as highly insufficient.”

By Damir Kaletovic for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • JHM on March 16 2017 said:
    "Finally, it would ensure more equitable gas pricing for Estonia, Latvia, Lithuania, Poland and Bulgaria. These five countries are particularly sensitive to the Gazprom deal because they have almost no alternatives to Russian gas."

    These countries need to follow the lead of Australia and massively build up electrical storage. Ukraine will likely go this way too. Ukraine has developed substantial wind resources, adding batteries and other storage to this will provide the flexibility needed to ease dependency on gas.

    The alternative to expensive gas is cheap batteries. Tesla is leading the way offering 100MWh+ systems at $250/kWh. This pricing is offered to all countries.

    Batteries source the lowest cost power however it is produced. So it optimizes use of base load coal and nuclear as well as harvesting cheap wind and solar. They also optimize the use of transmission lines and power imports. Batteries displace the need for gas plants used for load following and peaking.

    The scale needed to impact gas prices is much less than the scale needed to replace gas. When Russia understands that countries like Poland and Ukraine are committed to building up storage, it will come back to the negotiating table and offer better terms. Russia is sitting on massive long term asset. An aggressive batteries build out can leave these assets economically stranded. Thus, Russia must accept better terms for long-term gas contracts or else it will ruin its long-term investments. So commitment to an aggressive build up with a few nearterm projects will quickly give Poland and any other country the upper hand in negotiation.

Leave a comment

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