Gazprom will send some of the gas from its controversial Nord Stream 2 pipeline through Slovakia, the Russian state-controlled company said, in a move that may soften Slovak opposition to the project.
Gazprom's gas sales in Europe in the first half of 2016 rose by 14.2%, or 10.6 Bcm, compared with the same period of last year, Gazprom CEO Alexei Miller said Thursday, signaling a sharp slowdown in export growth in the second quarter of this year.
Eustream said June 30 that it welcomed assurances from Gazprom at the meetings that the Slovak and the Czech gas transmission systems will be used in long term even if NS2 is built. Eustream said also it “highly appreciates the understanding between both parties that the entry point from Ukraine to Slovakia shall remain fully functional even if NS2 is commissioned.”
72.4% of the overall scope of the work is done, which is ahead of schedule by about 2.5%. $12bn have been spent to date from total SD2 cost estimate of $24bn including an inflation rate for the period 2014-2020
Directors urged the authorities to accelerate structural reforms to boost growth and employment creation and facilitate income convergence with the EU. They highlighted the need to advance privatization and enhance the efficiency of the public sector, while removing bureaucratic impediments to doing business. Other priorities include further enhancing labor market flexibility to increase labor participation. Directors noted the importance of building political consensus to ensure broad support for the reforms.
In 2015 Gazprom increased gas exports to the region by 8% compared with 159.4bn m³ in 2014. The latest official statistics also indicate that Gazprom's gas exports experienced significant growth in the first four months of 2016.
BP’s energy outlook this year foresees a compound annual growth rate of gas demand at 1.8% until 2035. In the OECD, this growth results from the coal-to-gas transition in power generation. The US major ExxonMobil supports this view, forecasting gas will account for 30% of the power sector and will equal coal by 2040.
"We have such low production costs that we will always be able to cut the selling price by a dollar or two when it comes to fighting off a rival," said a senior source at Gazprom.
Gazprom's Deputy Chief Executive Alexander Medvedev said the BG holdings could be included in an asset swap deal between Gazprom and Shell that was announced last year. He did not say what the BG holdings were or where they were located.
Shipping 110bn m³/yr would cost Gazprom a quarter of the amount it would spend if it used Nord Stream, while booking capacity for 70bn m³/yr would still cost it only a third as much.