EGF Gazprom Monitor, Issue 56, January 2016

A Snapshot of Key Developments in the External Relations of the Russian Gas Sector

By Dr Jack Sharples, EGF Associate Researcher on the external dimensions of Russian gas and Lecturer in Energy Politics at the European University of St Petersburg

• Gazprom and the EU: EU Competition Commissioner states that talks with Gazprom are "moving forward" in parallel with continuation of formal procedures; Gazprom expects lower price for its European exports in Q1 2016; Extension of Gazprom"s gas supply contract with Lithuania in doubt as Litgas extends its LNG contract with Statoil and LDT opts to buy Norwegian LNG instead of Gazprom pipeline gas; Gazprom signs agreement on transit to the Russian enclave of Kaliningrad via Lithuania; Polish PGNiG eyes end of current contract with Gazprom, plans Norwegian gas imports from 2022; Polish PGNiG files claim against Gazprom at Stockholm Arbitration Court; Gazprom"s European market share reached 10-year high in 2015 as company plans record European exports in 2016; Could Gazprom retain its record market share?; Could low European gas prices shut out US LNG?; Gazprom and the potential price war in Europe

• Nord Stream: Nord Stream continues to divide opinion as European politicians line up to support or oppose the project; Gazprom cancels several tenders for construction of Russian pipelines linked to Nord Stream II

• Turkish Stream: Saipem files EUR759m arbitration suit against Gazprom over South Stream; Russian Energy Ministry dismisses Bulgarian claims of possible resurrection of South Stream; Gazprom cancels discount for Turkish Botaş

• Ukraine: Russian government proposed Q1 2016 gas discount for Ukraine is refused; Gazprom fines Naftogaz $2.5bn for breach of "take-or-pay" clause in Q3 2015; Antimonopoly Committee of Ukraine fines Gazprom $3.5bn for abuse of monopoly; Naftogaz delegation prepares for Moscow visit; The Gazprom-Naftogaz relationship: where do we stand at the beginning of 2016?

• Asia: Power of Siberia pipeline: project under pressure? Gazprom terminates contract with Turkmenistan, plans increased imports from Uzbekistan in 2016

• Other: Gazprom"s share of Russian gas production fell in 2015