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.

MENAFN1001201700670000ID1095172960

 


Gulf Times




  MENA News Headlines
 Jan 21 2017 - Joleon Lescott: Sunderland mulling over signing the free agentThe Peninsula
(MENAFN - The Peninsula) According to reports, Sunderland are considering making a move for veteran defender Joleon Lescott. The former Man City and Everton star, who is now a free agent, ...

 Jan 21 2017 - The Mind of Conte: How Chelsea's fluid front trio tore Leicester apartThe Peninsula
(MENAFN - The Peninsula) Amid all the speculation around Diego Costa and his future at the club, Chelsea produced a convincing performance away to Leicester last Saturday, which was exactly what the ...

 Jan 21 2017 - Williams shocked at deadly Melbourne rampageThe Peninsula
(MENAFN - The Peninsula) Melbourne:Serena Williams Saturday expressed her shock at the deadly rampage at a Melbourne shopping strip, as the Australian Open observed a minute's silence for the ...

 Jan 21 2017 - Syrian refugee, tripped by journalist, 'sad but hopeful'The Peninsula
(MENAFN - The Peninsula) Getafe, Spain: Over a year after arriving in Spain, the Syrian refugee who made headlines when a Hungarian journalist tripped him up as he fled police is still waiting for ...

 Jan 21 2017 - Solar energy in UAE expected to hit low records in 2017MENAFN
(MENAFN) An Emirati senior executive told press that solar energy costs will witness record lows this year in UAE, following two world records set in Dubai and Abu Dhabi last year.Ivano Iannelli, CEO ...

 Jan 21 2017 - Three Egyptian oil firms' budgets endorsed by Finance MinisterMENAFN
(MENAFN) According to Egyptian Petroleum Minister Tarek El -Molla, the planning budgets of three oil firms for financial year 2017/18 have been endorsed.The Minister headed the meeting of general ...

 Jan 21 2017 - Emaar to build new tower in Dubai Creek HarbourMENAFN
(MENAFN) Dubai-based Emaar Properties PJSC will launch Creek Gate, a new residential project in Dubai Creek Harbour next week, registered brokers told Zawya Projects. According to a real estate agent ...

 Jan 21 2017 - Nigeria air strike death toll hits 90Gulf Times
(MENAFN - Gulf Times) The death toll from a botched Nigerian air strike against Boko Haram that hit a camp for displaced people has risen to 90, and could climb as high as 170, Doctors Without ...

 Jan 21 2017 - WEF, UCSB-SBI unveil partnership to protect ocean economyKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) DAVOS, Switzerland, Jan 20 (KUNA) -- The World Economic Forum (WEF) and the University of California Santa Barbara's Marine Science Institute (UCSB-SBI) on Friday ...

 Jan 21 2017 - Trump has to define America's role in new world order - KissingerKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) DAVOS, Switzerland, Jan 20 (KUNA) -- With the international order in place since World War II breaking down, the new president of the United States, Donald J. ...

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