EGF Gazprom Monitor, Issue 26, July 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:

• Lietuvos Dujos prepares to extend its current gas supply contract with Gazprom in exchange for lower prices and offtake commitments; Gazprom to amend its gas supply contract with RWE following Vienna arbitration ruling; Edison is next in line for arbitration with Gazprom following the RWE ruling; Gazprom announces an upward revision of its 2013 gas export forecast and a 29 percent increase in gas exports to Europe in July 2013 versus the same period in 2012
• Gazprom and Naftogaz Ukraine reach agreement on reliable gas transit via Ukraine for winter 2013-14
• The Armenian government considers handing over its remaining stake in the country"s natural gas monopoly to Gazprom in exchange for lower prices; Gazprom acquires Kyrgyzstan"s natural gas monopoly, Kyrgyzgaz, and pledges substantial investment
• The Bulgarian section of South Stream faces delays over environmental reports and construction permits, but Gazprom remains adamant that the project will be completed on schedule; Macedonia to get South Stream branch
• Gazprom Germania decides against new UGSF in Triepkendorf, but continues to investigate the possibility of new gas storage facilities near Nord Stream"s landfall; Gazprom continues to press for full use of the OPAL pipeline in Germany; Nederlandse Gasunie complains about the quality of Russian gas delivered via Nord Stream
• Gazprom takes delivery of second LNG tanker for the delivery of gas to the Asia-Pacific via the Northern Sea Route
• Rosneft increases gas production by 186 percent versus H1 2012, providing further competition for Gazprom in the Russian gas sector; The International Energy Agency (IEA) voices its support for a shift from oil-indexed to spot gas prices; Daewoo Shipbuilding and Marine Engineering wins tender for up to 16 ice-class LNG tankers for the Yamal LNG project; Moscow hosts the Gas Exporting Countries Forum (GECF)