EGF Gazprom Monitor, Issue 73, June 2017

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

Key points:

• Gazprom and the EU:
  • Gazprom on the European market: Gazprom signs framework agreement with OMV for cooperation on small-scale LNG; Netherlands receives first-ever cargo of US LNG as domestic production continues to decline; Poland also receives its first ever delivery of LNG from the US; Poland and Denmark sign agreement on pipeline connection by 2022
  • Gazprom in the Baltic region: Gazprom and Shell sign agreements to set up JV and begin studies for Baltic LNG project; Construction begins at Hamina-Kotka small-scale LNG terminal in Finland; Achema, Litgas, and LDT book import capacity at Klaipeda LNG terminal for 2017-2018 gas year; Estonian PM continues to lobby for new Estonian LNG terminal on the Gulf of Finland in meetings with PMs of Latvia and Lithuania; GET Baltic electronic gas trading platform set to begin new regional operations on 1st of July 2017
• Nord Stream: European Commission requests mandate from EU member states to negotiate with Russian Federation over Nord Stream 2; US Senate proposes new sanctions that could impact European investment in Nord Stream 2, provoking a sharp reaction from Germany and Austria
• Southern Corridor: Gazprom, Edison, and DEPA agree to coordinate Turkish Stream and Poseidon pipelines; Putin visits Turkish Stream construction
• Ukraine: Following Naftogaz claim of "victory" in preliminary arbitration hearing, Gazprom responds that first ruling is "on balance" good for Gazprom, denies revocation of "take or pay" clause in their bilateral contract
• Asia: Gazprom announces aim to complete half the length of the Power of Siberia by end of 2017