A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
The Lithuanian Supreme Court postpones its hearing of Gazprom’s complaint against the Lithuanian Court of
Appeal; RWE Supply and Trading CZ wins a gas price dispute with Gazprom in the Vienna Commercial Court;
Gazprom fails to bid for Greece’s gas distribution system operator, DEPA; Gazprom officially announces its
plans to construct an LNG export terminal on Russia’s Baltic coast; Gazprom predicts a year-on-year increase in
gas exports in 2013
Gazprom pays Ukraine $1bn in an advance for gas transit fees until 1st of January 2015; Gazprom is not
pursuing legal action against Naftogaz Ukraine for failing to meet its ‘take or pay’ commitments; There are no
ongoing talks about the establishment of a consortium to manage Ukraine’s gas transportation system (GTS)
Gazprom continues to examine the potential for a second line of the Yamal-Europe pipeline to Europe via
Belarus
Gazprom confirms that the construction of South Stream’s offshore section will begin in the second quarter of
2014, to be launched in 2015; Collapse of the Nabucco pipeline project clears the way for South Stream in
South-East Europe
Gazprom and GDF Suez agree to explore the possibility of expanding the Nord Stream pipeline
Gazprom and CNPC aim to sign gas supply contract by the end of 2013; Gazprom and the Japan Far East Gas
Co. Ltd sign a Memorandum of Understanding on the latter’s participation in Gazprom’s Vladivostok LNG
project.
Gazprom’s Chairman and Chief Executive are re-elected at the company’s Annual General Meeting; CNPC
purchases a 20 percent stake in Novatek’s Yamal LNG project
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
The tortuous legal wrangling between Gazprom, the Lithuanian government, and Lithuania’s main gas utility,
Lietuvos Dujos, continues; Gazprom set to finalise its bid for Greece’s gas distribution system operator, DEPA;
Gazprom could construct Baltic LNG terminal
Gazprom rejects an invitation to attend a high level ministerial seminar in Brussels on Ukraine’s energy market,
which was jointly organised by the European Commission and the Ukrainian energy ministry; Ukraine could
cede control over its gas transit pipelines in exchange for guaranteed transit and a gas price discount
The construction of South Stream in Serbia will begin in late 2013 according to Srbijagas; South Stream Chief
Exec, Marcel Kramer, confirms that South Stream is on schedule for financing in early 2014 and construction of
the first line in 2015
Gazprom and CNPC aim to sign a gas supply contract by the end of 2013; Gazprom could lose its export
monopoly in the Asia-Pacific region; freight deliveries from Northern Russia to China via the Northern Sea
Route demonstrate the possibilities of LNG exports from Northern Russian to the Asia-Pacific region.
Rosneft steps up the pressure on Gazprom with its buyout of Itera.
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
Negotiations between Russia and Lithuania over their gas relationship and the unbundling over LietuvosDujos
continue; Polish Treasury Minister and PGNiG Chief Executive are sacked as a result of a EuRoPolGaz-Gazprom
agreement to investigate the possible expansion of the Yamal-Europe gas pipeline
Gazprom boycotts a high-level roundtable held by Ukrainian and EU representatives on the future
management and development of Ukraine’s gas transport system, and warns European energy companies
against reselling Russian gas back to Ukraine, as Ukraine continues to seek alternatives to Russian gas imports
Gazprom and Gasunie agree to investigate the possibility of expanding the Nord Stream gas pipeline, with
Gazprom eyeing an increase in gas exports to the British market, despite the current under-utilisationof the
existing Nord Stream pipeline
Gazprom announces that the spatial planning and Environmental Impact Assessment (EIA) reports for South
Stream in Slovenia are almost complete and that construction could begin next year; Bulgarian government
announces a review of South Stream, but pledges to continue with the project; Construction of the Serbian
section of South Stream could start by the end of 2013, rather than in 2014 as planned
Gazprom announces its 2012 financial results; Rosneft continues to challenge Gazprom in the sphere of gas
exports by announcing talks with ExxonMobil over the construction of an LNG export terminal in Russia’s Far
East; Beltransgaz to be renamed Gazprom Transgaz Belarus to reflect Gazprom’s takeover
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
Lietuvos Dujos confirms its decision to spin off its gas transport business by the 31st of July 2013, with Gazprom
and E.On expected to sell their stakes in the Lithuanian gas utility by October 2014; Gazprom agrees a deal with
the Czech-based MND Group to construct a new underground gas storage facility in the Czech Republic by
2016; Gazprom signs a long-term gas supply contract with Serbia; Gazprom denies reports that it has offered to
fund the restructuring of Cypriot banks in exchange for gas exploration rights in Cyprus’ exclusive economic
zone
Gazprom is unlikely to offer significant gas price cuts to Ukraine, as the company dismisses Ukrainian plans to
import more gas from other European sources; The European Commission supports the idea of a trilateral
consortium including Naftogaz, Gazprom, and European energy companies to manage Ukraine’s gas transport
system
Nord Stream has operated at just 27 percent of its capacity since the launch of the second string in October
2012
Gazprom is reportedly considering constructing a spur of South Stream to Greece, but stands by its decision to
remove the Greece-Italy connection from the project. The fate of South Stream’s spur to Greece may well be
decided by the outcome of the privatisation of Greece’s national gas utility, DEPA, in which Gazprom is
considering bidding for a stake
Gazprom and the China National Petroleum Corporation (CNPC) sign a Memorandum of Understanding on gas
supplies via the Eastern route, and hope to sign a gas supply contract by the end of 2013
Russia’s Energy Ministry supports proposals for the export of LNG by Novatek and Rosneft to the Asia-Pacific
region, but insists that Gazprom retains its monopoly on gas exports to Europe; Gazprom to complete its
purchase of Kyrgyzstan’s national gas system by the end of March.
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
by Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
Gazprom Gazprom expects gas prices for its European exports to fall by an average of 14 percent in 2013, as it prepares to grant $4.7bn in price discounts over the next year.
Ukrainian wholesale gas importer Naftogaz refuses to pay a $7bn bill from Gazprom for unused gas in 2012, and challenges the take or pay terms of the Naftogaz-Gazprom contract.
Nord Stream AG receives a construction permit for the pipeline’s final onshore German section, although plans for Nord Stream’s expansion are already facing delays.
Gazprom increases its estimates of the cost of South Stream, with plans for extra investment in the pipeline’s onshore Russian section.
Gazprom takes a final investment decision on its Vladivostok LNG terminal, with the Asia-Pacific region being the target market, while yet another meeting with China’s CNPC concludes without the announcement of concrete progress towards finalising Russian gas supplies to China.
Gazprom’s export monopoly comes under further pressure, as Rosneft President, Igor Sechin, calls for the liberalisation of Russia’s gas exports.
Celebrations of Gazprom’s 20th anniversary are overshadowed by the passing of its former-Chairman, Rem Vyakhirev.
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
by Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
Gazprom is under pressure from all sides. European energy companies request further gas price discounts, export volumes fell in 2012 and are expected to remain weak in 2013, PM Medvedev suggests that Gazprom’s export monopoly could be revoked, and Gazprom faces criticism from Europe and the United States over its bid for Greece’s state-owned gas utility, DEPA.
Gazprom slaps Naftogaz with a $7bn bill for failing to purchase sufficient amounts of gas in 2012.
The Czech section of Nord Steam, Gazelle, is launched as Gazprom CEO, Alexei Miller, declares an expansion of Nord Stream to be ‘feasible’ despite the pipeline operating at well below capacity since its launch
Gazprom and the Croatian State-owned energy company, Plinacro, to set up a joint venture in mid-2013 for the construction of a spur from South Stream into Croatia, while Serbia is set to grant South Stream ‘national status’
Gazprom signs an agreement with Novatek to produce LNG on the Yamal Peninsula, with Asia the predicted export destination
Gazprom lobbies the Russian government for Shtokman tax breaks as the Russian government considers revoking the Gazprom-Rosneft monopoly on offshore gas and oil production in Russia
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
Reports claim that Gazprom plans lower European gas export prices for 2013 in a bid to compete with spot price contracts, while Russian officials continue to press for exemptions from the Third Energy Package for Nord Stream and South Stream
Sources report that Gazprom could lower its gas export price for Ukraine for 2013 from the predicted $421 per thousand cubic metres to $352, as Ukrainian President, Viktor Yanukovich, announces a last-minute postponement of his meeting with Russian President, Vladimir Putin, in Moscow to discuss Russian-Ukrainian energy relations
Gazprom holds a ceremony to mark the start of the construction of South Stream, but the EU remains sceptical about the implementation of the project due to the lack of necessary assessments and permits
The Estonian government refuses permission for Nord Stream AG to conduct research in Estonia’s territorial waters, as part of plans for Nord Stream’s proposed expansion
Gazprom’s second-largest European customer, Turkey, proposes increasing its Russian gas imports by 3 bcm ‘in the near future’
Gazprom restarts high-level talks with the Chinese National Petroleum Corporation (CNPC) over Russian gas deliveries to China, with the two sides united by a focus on the Altai pipeline, but divided over gas prices
Two months after missing out to Rosneft on a lucrative deal to supply gas to Russian electricity utility, Inter RAO, Novatek signs a $4bn deal to supply 27 bcm to Moscow-based electricity generator, Mosenergo, as Gazprom loses more of the domestic Russian gas market
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
Gazprom announces an agreement with Poland’s PGNiG to adjust gas prices and signs an asset-swap deal with
BASFT Wintershall, but remains under pressure in Europe due to falling export volumes and the EU
antimonopoly investigation
Ukraine continues to press for reduced imports of Russian gas and receives first deliveries from RWE
Gazprom appears set to expand its underground gas storage facilities and gas transmission capacity in Belarus
Slovenia and Bulgaria confirm their final investment decisions for the South Stream project, as Gazprom’s
partners also take the final investment decision on the offshore section, while Gazprom signs a new gas supply
contract with Bulgargaz
Turkish regulators approve Gazprom’s new long-term supply contracts with private Turkish energy companies
Gazprom demonstrates the potential for shipping LNG from Europe to Japan as it charters the first LNG
supertanker to traverse the Arctic during winter
Novatek acquires 49 percent of Northgas, with Gazprom retaining its 51 percent stake in the company
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
Lithuania files a €1.5bn ($2bn) lawsuit against Gazprom, claiming the Russian company has abused its position
as monopoly gas exporter to Lithuania since 2004
RWE Transgas wins a landmark case against Gazprom, as it refuses to pay fines for breaking the ‘take-or-pay’
clauses in its gas supply contract
Naftogaz reaches an agreement with Germany’s RWE Trading for trial gas supplies via Poland
Gazprom officially launches the second line of Nord Stream, and announces plans for two additional lines
South Stream gets the green light to be realised on the territories of Serbia and Hungary, with similar
developments expected in relation to Bulgaria and Slovenia in November
Gazprom confirms the development of the Chayandinskoe gas field and related pipeline infrastructure as part
of its plan to increase LNG exports to the Asia-Pacific region
Gazprom signs a contract for LNG supplies to India and announces an increase in its LNG supplies to South
Korea
Gazprom officially launches gas production at the Bovanenkovo gas field, as part of its Yamal Megaproject
Rosneft cements its role in Russia’s gas sector, but supports Gazprom’s continued export monopoly
A Snapshot of Key Developments in the External Relations of the Russian Gas Sector for September 2012
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas
Key points:
The European Commission launches an antitrust investigation of Gazprom, as the company is suspected of
imposing unfair prices in Central and Eastern Europe. Gazprom claims innocence, but a Presidential Decree
preventing Russian strategic companies (such as Gazprom) from disclosing information to foreign
investigators without Russian government permission suggests that Moscow is concerned about the
investigation.
President Putin claims that the second line of Nord Stream is to be launched on 8 October, although this is yet
to be confirmed by Nord Stream AG, Gazprom, or the Russian Energy Ministry.
South Stream AG considers tenders for steel pipes for South Stream, as Gazprom vows to continue with the
project despite the launching of the antitrust investigation of Gazprom by the European Commission.
Gazprom hosts a meeting with the Chinese National Petroleum Corporation and claims ‘a step forward’ in
long-running negotiations, although sources suggest significant disagreements remain between the two
parties.
As Ukraine seeks lower gas purchases (27 bcm) from Russia in 2012, a new winter dispute cannot be ruled
out.
Gazprom indefinitely suspends the Shtokman project, but signs a long-term cooperation agreement with
Rosneft for the development of Russia’s continental shelf.
Gazprom and Japan’s Agency for Natural Resources and Energy sign a Memorandum on the Vladivostok LNG
project – with a final investment decision expected in early 2013.
EGF Head of Research, Dr. George Vlad NICULESCU, co-edited a new volume on “Understanding Contemporary Information Landscape Handbook (UCIL)” with the Austrian National Defence Academy and the PfP Consortium of Defence Academies and Security Studies Institutes: “The idea of this Handbook sprang forth from a policy recommendation issued at a past Regional Stability in the South Caucasus Study Group (RSSC SG) workshop: “Create, with the assistance of PfP Consortium volunteers, a Reference Curriculum on Media Literacy, emphasizing the impact of modern communication techniques and social media on human biology, psychology and behaviour. The aim would be to raise awareness of the media as a tool of hybrid warfare, and how to build resilience to it at individual level.” Looking with an academic eye at the final product of our last three years of work I’d conclude that this Handbook is a great success as a valuable education tool for students and teachers in media studies, politics, international relations. READ MORE
EGF Affiliated Expert Benyamin POGHOSYAN commented for the author of a “Turkey recap” report on “Turkey-Armenia normalization proceeds (or not) with Baku’s consent”. He thought that: “Pashinyan's government is basically signalling that if there's political will on the Turkish side, relations can be normalized tomorrow. But in the third year of normalization talks, it looks more like an imitation of negotiations.” READ MORE
EGF Affiliated Expert Nika CHITADZE published a new book on “World Politics” with the International Black Sea University from Tbilisi, Georgia. The book is divided into four main parts: first part is dedicated to the history and theory of world politics; second part analyses key processes in world politics, such as: globalization, integration, and democratization. Third part describes the basic challenges facing the international community, including arms control and security, conflicts, terrorism, organized crime, failed states, demography, migration, environment, relations between the “Global North” and the “Global South”. The fourth part reviews the main aspects of regulating the political processes in the world with the methods and instruments of foreign policy and diplomacy, and global governance. READ HERE
EGF Affiliated expert Yeghia TASHJYAN has recently published research on: “The Battle of the Corridors: Regional Interconnectivity and the Geo-economic future of the Middle East”. He concluded that “[…] it is essential to analyse Russia’s position in the South Caucasus and the logic of “regional interconnectivity” that Moscow is aiming to have land access to the Middle East. Russia views these regions from a holistic perspective, that is those regions have shared historical, cultural, and economic interactions, and are not geographically separated areas.” READ HERE
Between 07-10 November 2024, Dr Marat TERTEROV and Dr George Vlad NICULESCU participated in the 28th workshop of the Regional Stability in the South Caucasus Study Group of the PfP Consortium of Defence Academies and Security Studies Institutes on “Connectivity Risks and Opportunities in the South Caucasus”, held in Reichenau a/d Rax (Austria). Please click here for the programme and agenda outline, and here for George’s speaking points.
Between 11-13 April 2024, Dr Marat TERTEROV and Dr George Vlad NICULESCU participated in the 27th workshop of the Regional Stability in the South Caucasus Study Group of the PfP Consortium of Defence Academies and Security Studies Institutes on “Does the European Union Need a Strategy for the South Caucasus?”, held in Chisinau (Republic of Moldova). Please click here for the programme and agenda outline, here for George’s speaking points, and here for the ensuing Policy Recommendations.
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