Gazprom pipelines and export capacity

Газопроводы Газпрома и экспортные мощности

Gas pipelines of West Siberia

Газопроводы Западной Сибири

Export flows of Gazprom

Экспортные потоки

Spot, Gazprom, Brent

Цены на нефть и газ

End-use price of gas

Russia and USA

Daily gas production

Суточная добыча


EU to benefit from Nord Stream extension to the UK


Nord Stream gas pipeline extension from Germany to the UK would be beneficial for continental Europe. The new pipeline would allow German gas consumers to buy more Russian gas at the British market price. In the past three years, the average price of Russian natural gas at the German border was some 30% above the NBP level, so taking less expensive fuel from the flow running through the German territory would make a lot of sense. There is no guarantee that the UK price will always be lower than the continental one, but it is good to have a choice between the oil-linked and spot market indexed price of gas.

The new link can increase volumes of Russian gas exports, so the project is beneficial for Gazprom as well. In my view, the drop of the price of gas is not bad at all. A fast nickel is always better than a slow dime.

Mikhail Korchemkin

East European Gas Analysis

Malvern, PA, USA

 

October 8, 2012

 

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Last modified: 12/07/14                    East European Gas Analysis 2006-2014                                           Email: info@eegas.com
Reproduction or use of materials is allowed only with reference to East European Gas Analysis or www.eegas.com