EGF Gazprom Monitor, Issue 36, May 2014

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 and Lecturer in Energy Politics at the European University of St Petersburg

Key points:

• Special report on the Gazprom-CNPC gas deal: Gazprom was always unlikely to achieve "European" prices for its gas exports to China, but the deal with CNPC is crucial to the development of gas production and transportation in East Siberia and Russia"s Far East
• In-depth report on the latest developments in the Gazprom-Naftogaz dispute: Gazprom switches to pre-payment, and demands that Naftogaz pay up front for its June gas supplies. If Naftogaz fails to pay by the 2nd of June, Gazprom"s supplies to Naftogaz to could be halted the following day
• EU antitrust damages directive approved by European Parliament, and passed to EU Council of Ministers for final approval
• Gazprom and Lietuvos Dujos reach agreement on gas price for Lithuania, as Lithuania continues to negotiate for alternative supplies
• Eni signs landmark agreement with Gazprom to switch to spot pricing in existing long-term gas supply contract
• South Stream could get a 32 bcm spur from Hungary to Austria
• Gazprom Marketing and Trading Ltd and CNPC each agree to buy 3 million tonnes of LNG per year for the next 20 years from Novatek"s Yamal LNG project