EGF Gazprom Monitor, Issue 14, July 2012

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 suffers a setback as the Lithuanian parliament approves construction of an LNG plant at Klaipeda as part of efforts to reduce dependence on Russian gas, but agrees a gas price discount for E.On and extends contract with Moldovgaz, potentially halting Moldova"s implementation of the Third Energy Package
• Mixed fortunes for Gazprom in Turkey as the company wins the right to sell gas to private Turkish energy companies, but suffers a setback with the announcement of a Turkish-Azerbaijani agreement on the construction of the TANAP pipeline
• The Nord Stream project is on schedule for the second string launch in Q4 2012. CEO Alexei Miller suggests that Nord Stream could be extended to the UK
• Macedonia and Respublika Srpska reiterate their enthusiasm for South Stream, but the date of final investment decision and the application of the EU Third Energy Package remain unclear
• Putin meets Yanukovych in Yalta but refuses demands for gas price discount
• More negotiations between Gazprom and CNPC, but with no breakthrough
• Shtokman talks delayed with a result not being expected until autumn 2012
• Gazprom is ranked as the world"s most profitable company by Forbes, but only comes 98th of 105 in transparency rankings according to report by Transparency International
• Novatek begins construction of Sabetta LNG terminal in Yamal region, but claims no threat to Gazprom"s export monopoly
• Rosneft expands its presence in the Russian gas market with an acquisition of a 6 percent stake in independent gas company Itera