EGF Gazprom Monitor, Issue 60, May 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:
  • Gazprom and the European Commission: Latest round of talks between Gazprom and European Commission scheduled for May yet to take place
  • Gazprom on the European market: Gazprom exports to Europe flat year-on-year in April and May after Q1 growth; PGNiG plans to not extend its contract with Gazprom after 2022, Gazprom could offer gas to companies other than PGNiG on the Poland-Belarus border; Gazprom expects June announcement of new auction for exports to Europe
  • Gazprom in the Baltic region: Estonian Trillini to buy Gazprom's 37 percent stake in Eesti Gaas
  • Gazprom's European contracts and arbitration: Dutch GasTerra initiates arbitration with Gazprom; Gazprom may settle arbitration case with PGNiG
• Nord Stream: Nord Stream II continues to divide Europeans; Cost of Nord Stream II construction estimated at EUR 8 billion, plus EUR 2 billion in financing costs; Nord Stream vs. Ukraine: Delivery distances
• Southern Corridor: Gazprom begins re-deployment of infrastructure intended for South Stream to Nord Stream II
• Ukraine and Belarus: Naftogaz refuses to pay for gas delivered to Ukraine's Donbass region since February 2015; Naftogaz prepared to resume purchases of Russian gas, if the commercial conditions are amenable; Gazprom reveals Belarus" debt of USD 200m as gas price negotiations remain ongoing
• Asia: Gazprom announces reduction in price and volume of gas purchased from Turkmenistan, Kazakhstan and Uzbekistan in 2015; Gazprom scales back construction of Power of Siberia, but still intends commissioning in 2018; Gazprom rejects applications from independent gas producers for access to Power of Siberia pipeline; Gazprom could alter configuration of gas exports to China