EGF Gazprom Monitor, Issue 21, February 2013

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.