EGF Gazprom Monitor, Issue 15, August 2012

A Snapshot of Key Developments in the External Relations of the Russian Gas Sector for August 2012
By Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas

Key points:

• Gazprom and the Lithuanian Government both claim victory following the Stockholm Chamber of Commerce Arbitration Institute ruling over Lietuvos Dujos
• Gazprom signs contracts with four Turkish energy companies to supply 6 bcm of Russian gas from January 2013, replacing the volumes given up by Turkish state energy company, Botaş, in October 2011
• Nord Stream AG completes the welding of the second string of Nord Stream pipeline and requests permission to conduct research in Estonian territorial waters as part of plans for the expansion of the Nord Stream pipeline
• South Stream could be re-routed via Croatia, bypassing Hungary
• Putin and Yanukovych meet in Sochi, with Ukraine planning to reduce its Russian gas imports and hoping for an (unlikely) gas price discount
• Gazprom CEO, Alexei Miller, held meetings in Belarus, discussed investments in the gas transmission system of Beltransgaz and the expansion of natural gas as a motor fuel in Belarus
• Statoil withdraws from the Shtokman project, ceding its stake to Gazprom — Will Total follow suit?
• Novatek announces a breakthrough deal to supply gas to German utility company EnBW, as E.On Russia confirms that it will buy gas for its power stations from Novatek, not Gazprom, from 2013