gazprom flags shtokman gas shift europe wary
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Gazprom flags Shtokman gas shift, Europe wary

Arab Today, arab today

Arab Today, arab today Gazprom flags Shtokman gas shift, Europe wary

Urengoi - Arabstoday

Gazprom may ditch plans to pipe Arctic gas from its Shtokman project, a top executive said, potentially giving Russia’s top energy firm more leeway to sell supplies from the huge field to customers outside Europe. Gazprom may instead focus on producing more easily transportable liquefied natural gas at the Barents Sea deposit, deputy chief executive Alexander Medvedev said on Saturday -the first time the company has mentioned that option. The comment is likely to stoke concerns in Europe about whether Russia can be relied on as a major long-term gas supplier, given rising demand for the fuel in Asian markets. European companies have complained that Gazprom — which supplies a quarter of the continent’s gas needs — has not met their requests for extra deliveries during the current cold snap. Gazprom said it has been unable to meet all the additional demand. Prime Minister Vladimir Putin, who will serve a third term as president from May, said last month that Russia should wean itself off its dependency on European pipeline gas deliveries and expand into super-cooled LNG, which can be delivered to the markets of Europe, the Middle East and Asia by tanker without infrastructure constraints. Speaking to reporters on Saturday at the launch of a new gas well in Urengoi in the Arctic region, Medvedev admitted the company’s exports to Europe might be less than the 154 billion cubic metres it has projected. “We said that exports will total 154 (bcm this year) but even if it is 150 bcm, revenues won’t be lower,” he said. Earlier this week a Gazprom’s official said the company will increase its gas production next winter. Shtokman’s gas reserves are estimated at 3.9 trillion cubic metres, enough to meet a year’s global consumption and making it potentially the world’s tenth largest field. In theory, gas from the field is due to be piped to Europe via the Nord Stream pipeline -launched last November -from 2016 and shipped as more costly liquefied natural gas from 2017. But its development has been fraught with problems and last month its operating consortium deferred for the third time since March 2011 a final decision whether to press ahead with initial investments of around $30 billion, according to some estimates. The consortium —Gazprom with a 51 per cent stake, France’s Total (25 per cent) and Norway’s Statoil (24 per cent) -has been mired in debate over the project’s future for several years, with tax breaks being the key issue. Statoil declined to comment on Medvedev’s remarks and no one at Total was immediately available. Under current tax rules, the economics of LNG are seen as superior to those of the pipeline option, with Russia having exempted all LNG projects from export duty. At present, Russia’s only LNG plant -at Sakhalin-2 project of Gazprom and Shell -produces 10 million tonnes of frozen gas a year. Analysts from energy consultancy Wood MacKenzie have said they see Shtokman supplementing this as primarily an LNG project. Russia is considering up to 60 million tonnes in new annual LNG capacity by 2020 to feed Asian markets, especially China and Japan, where demand for the fuel has risen after last spring’s Fukushima nuclear plant disaster. Medvedev, who is also the head of Gazprom’s exporting arm, said gas from Shtokman will be sent to southeast Asia as well as Europe. “Preparations for a business model of cooperation with foreign partners are under way... The key thing is that, despite prolonged discussions, faith in LNG has returned to them, and we never lost it,” he said. Gazprom has been unable to strike an agreement with China on proposed pipeline gas exports due to a dispute over pricing, and analysts say that deal is off the agenda for the foreseeable future. As regards Europe, Gazprom had already lowered its initial estimate of 164 bcm of pipeline gas exports this year as it faced stiff competition from alternative fuel there, such as LNG as well as a cheaper spot market. The company has also made pricing concessions to several customers, including Italian’s ENI.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gazprom flags shtokman gas shift europe wary gazprom flags shtokman gas shift europe wary

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gazprom flags shtokman gas shift europe wary gazprom flags shtokman gas shift europe wary

 



GMT 10:06 2012 Saturday ,28 July

Querrey advances at ATP LA Open

GMT 21:15 2017 Thursday ,01 June

Trump condemns deadly Kabul explosion

GMT 02:15 2017 Thursday ,24 August

Is your country on the Qatar free entry list of 80?

GMT 19:48 2016 Monday ,03 October

Controversial boxing champ Tyson Fury retires

GMT 08:20 2015 Tuesday ,08 December

PC market woes show no sign of easing

GMT 17:27 2017 Tuesday ,25 April

20 Yemeni soldiers killed, injured in explosion

GMT 11:52 2017 Saturday ,30 December

OIC condemns Mar Mina Church attack

GMT 00:03 2017 Saturday ,25 March

Arab Meeting to Examine Anti-Corruption Methods

GMT 13:12 2017 Thursday ,20 April

Deputy premier meets Arab League chief

GMT 14:13 2014 Friday ,10 January

Opel Astra GTC

GMT 18:27 2016 Tuesday ,02 August

Turkish Foreign Minister arrives in Islamabad

GMT 11:27 2016 Tuesday ,13 December

Saudi woman arrested for challenging social norms
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday