RUSSIAN GAS TO EU
Russia will continue to provide competitive natural gas deliveries to Europe until mid-2020 and there is a limited possibility that other sources including LNG supplies, will offset Russian imports significantly, participants at the Flame conference in Amsterdam said Tuesday.
In the wake of the Russia-Ukraine crisis that began last year, the European Commission had promptly provided an updated energy strategy report, seeking measures to diversity energy sources in Europe to increase security of supply. The report mentioned LNG supply as one of the key additional sources of non-Russian gas into Europe.
"With NBP and spot LNG in Asia being on par, we are seeing an increase of LNG berthing in Europe, and this should become the new normal," Thierry Bros, senior European Gas and LNG analyst at Societe Generale. But "Russia and Norway have the market power in Europe," he said.
Looking at the supply and demand picture, Russia remains the lowest cost producer for Europe until 2020 at $6.00/MMBtu (Eur16.60/MWh), and it will not allow US LNG to berth in Europe, according to the analyst. US LNG supplies to Europe indexed to Henry hub prices are estimated at more than $10/MMBtu (Eur27.70/MWh) including all costs, he said.
|November, 16, 10:10:00|
|November, 16, 10:00:00|
|November, 16, 09:55:00|
|November, 16, 09:50:00|
|November, 16, 09:45:00|
|November, 16, 09:40:00|
PLATTS - Asia is a growing market for Russian energy, including LNG, and a potential source of investment for the world's largest producer of resources and minerals. The Kremlin has increasingly looked to build its presence in the Asian region following the imposition of tough sanctions by the US on Russia.
REUTERS - “The Saudis are very angry at Trump. They don’t trust him any more and feel very strongly about a cut. They had no heads-up about the waivers,” said one senior source briefed on Saudi energy policies.
PLATTS - "It is obvious that we need to cooperate with Saudi Arabia, and we are going to cooperate with Saudi Arabia. OPEC plus has been very positive, and we see that in the market situation," Putin told reporters in Singapore during a briefing broadcast on Russia 24.
U.S. OFR - The U.S. Office of Financial Research (OFR) released its 2018 Annual Report to Congress, stating that risks to U.S. financial stability remain in the medium range, reflecting a mix of high, moderate, and low risks to the financial system.