Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Europe misses out on global LNG surge as Russian gas pumps at record rate  Join our daily free Newsletter

MENAFN - Gulf Times - 10/01/2017
No. of Ratings : 0
Add to Mixx!


(MENAFN - Gulf Times) Russia looks set to grab more market share in Europe's natural gas sector in the first half of this year after gaining ground in 2016 despite EU efforts to diversify away from Moscow's energy exports and a global glut of liquefied natural gas.
With the United States finally breaking the seal on LNG exports last year, analysts envisaged the ocean-going tankers challenging Russia's land-locked pipelines supplying Europe in a race that would send gas prices ever lower.
But with attacks on Nigerian pipelines that would have sold supplies into Latin America, new consumers and nuclear outages in Asia, major US gas shippers and other exporters took advantage of the shortages to plug those gaps.
The United States sent only two shipments to Europe, analysts said.
Industry consultants expect LNG to stay scarce in Europe for at least the next six months, giving Russia's Gazprom — already supplying a third of Europe's gas needs — free rein to capture more market share.
'They are now in a position to keep raising exports as European gas demand grows, domestic production falls, and Gazprom's cost-competitive sales strategy keeps LNG flowing to other regions, Thierry Bros, senior research fellow at the Oxford Institute of Energy Studies said.
On Saturday, Gazprom said its daily supplies of natural gas to countries outside the former Soviet Union had reached a record high due to cold weather in Europe.
Concern in Europe over relying on Russia for gas since pricing spats between Moscow and Kiev disrupted supplies has grown in the wake of Russia's seizure of the Crimea region from Ukraine in March 2014.
While, the EU has succeeded in increasing renewables and the use of reverse-flow pipelines to maximise available supplies, some countries are still 100% dependent on Russian gas.
Sharply rising US LNG exports could provide an alternative.
In reality though, Gazprom, and Algeria's state-run gas exporter Sonatrach, enjoyed unfettered expansion, with Gazprom also tweaking long-term deals with European clients, who have become more demanding thanks to the rival sources of fuel.

'The aggregate amount of gas exported to Europe in 2016 — and I can say that for certain — is expected to exceed 179bn cubic metres.
That is a historic high, Gazprom's CEO Alexei Miller said on December 30.
In contrast, Europe got just two US shipments, while top producer Qatar homed in on growth markets including India, Egypt, Pakistan and Jordan — slashing exports to Europe by 16% to 17.5mn tonnes, FACTS Global Energy senior analyst Kittithat Promthaveepong said.
The latest estimates suggest Europe's overall imports fell slightly in 2016 despite a 6.2 % jump in global LNG output to 263.7mn tonnes, independent consultant Andy Flower said.
Attacks on pipelines in Nigeria and dwindling resources in Trinidad, once stalwarts of the LNG export market, took supplies off the open market and gave new US LNG producers an opening to plough shipments into South America, not Europe.
'LNG supply failures in the Atlantic deprived northwest Europe of hoped-for supply, benefiting mainly the continent's two biggest pipeline suppliers — Russia and Algeria, said Ira Joseph, head of global gas and power at Pira Energy.
Algerian exports to Italy rose to 17.1 bcm compared with 7.1 bcm in 2015, according to Pira figures.
'Russian and Algerian pipeline exports benefited greatly from Europe's LNG standstill and they are poised to benefit so long as Atlantic Basin LNG production problems persist and Asian nuclear outages keep shipments flowing towards the Far East, Joseph said.
However, Gazprom will not get a free pass indefinitely, as the situation begins to turn again from the middle of 2017, Pira's Joseph and FACTS' Promthaveepong say.
At that point, new LNG production growth from the United States and Australia should start spilling over into Europe as new markets will struggle to absorb surpluses fast enough.
FACTS expects up to 20mn tonnes of extra supply to be pushed into Europe above and beyond the region's natural demand as production fully ramps up towards the end of the decade.


 


Gulf Times




  MENA News Headlines
 Feb 21 2017 - Clear Brine Fluids Market set to reach USD 1.4 billion by 2024.MENAFN Press
(MENAFN Editorial) Clear Brine Fluids Market size was valued at over USD 870 million in 2015 and will witness gains at 5% CAGR by 2024. Positive growth indicators in the oil & gas industry across ...

 Feb 21 2017 - Miss Malarkey's Lost Her Man is the story of an unglamorous apocalypseMENAFN Press
(MENAFN Editorial) iCrowdNewswire - Feb 20, 2017 Miss Malarkey's Lost Her Man A campaign raising money for the production of a 10-minute short film shot locally in Cornwall and created by ...

 Feb 21 2017 - Tel Aviv: Neomatix helps drivers and vehicle fleet operators save money on gas and tires while improving road safety and reducing CO2 emissionsMENAFN Press
(MENAFN Editorial) iCrowdNewswire - Feb 20, 2017 NeomatixThe company helps drivers and vehicle fleet operators save money on gas and tires while improving road safety and reducing CO2 emissions. ...

 Feb 21 2017 - The World Faces a 'Terrible Lack of Trust'MENAFN Press
(MENAFN Editorial) iCrowdNewswire - Feb 21, 2017 By IPS World Desk Antonio Guterres, UN Secretary General. Credit: UN Photo/Jean-Marc Ferré DUBAI/ROME, Feb 14 2017 (IPS) - The world ...

 Feb 21 2017 - Libya Gaddafi regime trial fell short of international standards UN reportMENAFN Press
(MENAFN Editorial) Libya Gaddafi regime trial fell short of international standards – UN reportThe report by UNSMIL and the UN Human Rights Office (OHCHR) analyses key aspects of the trial in light ...

 Feb 21 2017 - Joint FAO/UNICEF/WFP statement on famine in South SudanMENAFN Press
(MENAFN Editorial) Joint FAO/UNICEF/WFP statement on famine in South SudanThe heads of three UN agencies issued the following joint call for urgent action to allow aid to reach people facing ...

 Feb 21 2017 - Egypt - Women's Film Festival of AswanMENAFN Press
(MENAFN Editorial) Egypt - Women's Film Festival of AswanThe days dedicated to the Italian shorts will be presented by director Cristina Picchi, who is in Aswan to present the screening of her own ...

 Feb 21 2017 - Severe Food Shortages Hit Africa's Refugees Hard UNHCR and WFP WarnMENAFN Press
(MENAFN Editorial) Severe Food Shortages Hit Africa's Refugees Hard – UNHCR and WFP WarnUNHCR and WFP are concerned that sustained cuts to food assistance will have severe nutrition and ...

 Feb 21 2017 - Nearly 1.4 million children at imminent risk of death as famine looms in Nigeria, Somalia, South Sudan and Yemen UNICEFMENAFN Press
(MENAFN Editorial) Nearly 1.4 million children at imminent risk of death as famine looms in Nigeria, Somalia, South Sudan and Yemen – UNICEFThis year, UNICEF is working with partners to provide ...

 Feb 21 2017 - BMO Capital Markets to Host 26th Annual Global Metals & Mining ConferenceMENAFN Press
(MENAFN Editorial) Feb. 21, 2017 /PRNewswire/ -BMO Capital Markets will host its 26th annual Global Metals & Mining Conference from February 26 to March 1, 2017, in Hollywood, Florida. The ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help