Russia’s Gazprom Moves Forward With New Mega Pipeline

05/05/2020 10:32 Natural Gas


The Russian gas export monopoly Gazprom has hit the wall with new European projects – Nord Stream 2 will be finished at some point in the second half of 2021, the exact route of TurkStream’s second line remains veiled in ambiguity and no other major gas importer voiced their interest in carrying out a new project. 

Thus, the only remaining prospect for growth lies in Eastern Asia and primarily China. Apart from a tangible gas market saturation in Europe, there are two main premises for a second-phase Gazprom expansion into China: its largely untapped Eastern Siberian gas reserves that would be very costly to move all across Russia onto European markets and the competitiveness of Russian pipeline gas on the Chinese market. 


Gazprom’s current China-bound project, the 38 BCm per year Power of Siberia (PoS) pipeline, started up in December 2019. Surprisingly, the Russian firm halted gas exports via PoS mid-March for a (previously non-indicated) two-week maintenance which turned out to be an elegant way of circumventing the massive demand drop in China. 


Even with another round of maintenance announced for autumn, Gazprom should be able to meet its export target for 2020 – 5 BCm, rising steadily to 10 BCm per year in 2021 and 15 BCm in 2022. By 2025 Power of Siberia should reach its nominal capacity and it is the next step after that currently exercises the minds of Russian policy makers and gas traders alike.


Enagas and BP partner on LNG, CNG as fuel in Spain

07/07/2020 09:36:00

Enagas and a unit of BP have teamed up to promote the use of LNG and CNG as fuel for the transport sector in Spain as part of a move to reduce emissions.


EDF revises 2020 forecast for French nuclear output

07/07/2020 09:16:00

EDF is revising upwards its nuclear output estimate in France for 2020, to around 315-325 terawatt-hours. In April, the French state-owned utility said it expected generation this year to be about 300 TWh, down from an initial expectation of 375-390 TWh before the coronavirus outbreak.


Daily (06.07.2020) NBP spot plunged by almost 5% on Friday influenced by an upward revision of the French nuclear output.

06/07/2020 10:40:00

Crude oil prices lost momentum on Friday, on renewed fears over global fuel demand as U.S reported a surge in coronavirus cases. Nevertheless, signs of improving global economy and OPEC+ record high supply cuts limited the loss. As a result, Brent crude decreased by 0.8% to $42.80 a barrel. Similarly, WTI futures traded 1% lower at $40.24 a barrel.