Russian Oil and Gas Industry: News

nobunaga wrote:Even if Greece starts building TS pipeline(there is a big chance they are playing Russia to get more concesions from EU creditors) Macedonia and Serbia won't do anything to jeperdise they chances to get to EU and they won't buld it if EU doesn't approve.There is no doubt it is a great deal for thoose countries but EU doesn't care about their devolpment but how to squeeze Russia and puppets have to do what they masters tell them.Russia should focus on developing pipelines in asia to china,india and south korea and offc LNG is something well worth investing.EU doesn't deserve cheap russian gas,let them buy it from their american friends at high prices

Actually Russian gas is cheaper, but not cheap. Furthermore Russia profits from a previous network courtesy of CCCP through Ukraine. What happens now is that Russia will have more and more difficulties to be competitive WITHIN the EU. However the current rules if upheld for all players will make impossible any kind of worthy replacement. The 3rd package will be impractical, but that's the norm with the EU.

As for the importance of EU market, it is a gold mine. We're talking about 200 bln deals. YOY. And it won't go away so fast as in Europe will not go away from Russia. The LNG crapola that the Baltics are so proud off is a white elephant and an utterly political move. But it is also a speck in the big picture.


Russia shouldn't start investing heavily on LNG, since that would bring the cost down soon enough.The idea is to have the LNG at 120% of the price. Furthermore there aren't enough means to haul the prospected needs in LNG.

LNG cannot be made cheap since it takes 30% of the energy of the natural gas liquified to liquify it. Maybe they can build nuclear
reactors to save burning 30% of the gas, much like they were talking about building nuclear reactors to facilitate Canadian tar sands
development. But I see no hint of this taking place.

Russia makes $56 billion per year selling its 163 bcm to the EU. Given all the pain the EU is creating for Russia, I think it is
not so lucrative.

The 3rd energy directive is monetarist crap. Here in Ontario we had the electrical utility monopolist (Ontario Hydro) split into
three parts: generation, transmission and some other part I forget. This has resulted in significant price increases since these
pieces are not in any competition and have to pay dividends to new shareholders. This idiocy is what the EU is following.
I provides no benefit to the end user even thought the policy is applied in the name of the end user. An old story.

sepheronx wrote:http://rt.com/business/253269-lithuania-eu-gazprom-antitrust/

Pathetic Baltic nations at it again. So cut Lithuania of gas and let them get what they want - sigbificantly expensive LNG.

Just stop the gas flow to this little parasites and period. Let us see how they survive without russian gas. I tell that all the time, russia has IMMENSE political and economical power it just does not use it. Russia alone could destroy all economies in EU, by not supplying gas, by cutting timber, minerals, precious metals and Metals overall which would terminate german automotive and industrial machinery and tooling market which it lifes on. Europe can not survive or make progress without russian resources, they themselfs have almost no resource production that would cover their needs and they are absolutle bound to buy russian resources, highest quality and most modest price.

sepheronx wrote:
Pathetic Baltic nations at it again. So cut Lithuania of gas and let them get what they want - sigbificantly expensive LNG.

Don't cut anything. Slash prices around them, just like it was done, and let them enjoy Freedom Gas, twice ze price.

FYI : Lithuania is the only nation buying 25% costly LNG fron Norway already . Let them file anti trust lawsuit turk stream will be completed in 2019 as scheduled and they can whine for their kiev regime to take leverage of transit route .

Russian Oil Giant Rosneft Mulls Creating Gas Subsidiary

A Rosneft representative refused to comment on the possible creation of a gas offshoot. One of the sources explained that "the idea to spin off company’s businesses has been discussed."

Russia's Federal Agency for Subsoil Use, Rosnedra, has suggested that energy giants Rosneft and Gazprom cooperate on the development of technologies for oil and gas exploration in the Arctic Shelf, the agency's deputy head Orest Kasparov said Thursday.

State-owned Rosneft plans to spin off its gas business into a subsidiary, Forbes reported citing sources aware of the situation.

According to the sources, the new subsidiary will be named Rosneft Gaz. Vlada Rusakova, head of Rosneft gas business, is expected to be appointed director of the new company.

She started her career in Rosneft in April 2013 and previously worked in Gazprom for many years. Since 2003 Rusakova has been a member of the board for Gazprom.

A Rosneft representative refused to comment on the possible creation of the gas offshoot.

One of the sources explained that "the idea to spin off company’s businesses has been discussed."

While Rosneft CEO Igor Sechin has not presented the idea for examination yet, the initiative has serious lobby support, a source told Forbes.

Rosneft is Russia’s third-largest gas producer, after Gazprom and Novatek. According to its financial data, in 2014 the company produced 56.7 billion cubic meters of gas. Profits surged by 72 percent compared to 2013, to 165 billion rubles ($3.2 billion at the current exchange rate).

Rosneft plans to increase gas production to 100 billion cubic meters by 2020, Sechin said.

The idea to spin off Rosneft's gas business may be a sign that the company is preparing for the revocation of Gazprom’s monopoly to export gas via pipelines, Mikhail Korchemkin, head of East European Gas Analysis, believes.

According to the analyst, the revocation of Gazprom’s monopoly is a way to overcome restrictions laid out in the Third Energy Package. A Rosneft subsidiary would be able to fully use the OPAL gas pipeline (an offshoot of the Nord Stream pipeline).

"The full use of OPAL is the fastest and least expensive way to reduce gas transit via the Ukrainian territory," he said.

Read more: http://sputniknews.com/business/20150427/1021421331.html#ixzz3YY7e5wKb

All this Gazprom anti trust BS (and other EU tantrums) is about trying desperately to preserve Ukraine's role as a transit country. Once that goes, it's a deal breaking event as far as their Ukr project goes.

____

Nothing wrong with decrees about small business, but obviously it will take a lot more than just that. It can't hurt to have official support

Cyberspec wrote:Once that goes, it's a deal breaking event as far as their Ukr project goes.

The complete cancellation of transit through the Ukraine is still a 4-year distant prospect; at which point it will be just the coup de grace anyhow; the Ukraine's economy would have long been annilihated by then if things carry on the way they're going now, even the continued existence of the Ukraine can't really be assumed.

Werewolf wrote:

sepheronx wrote:http://rt.com/business/253269-lithuania-eu-gazprom-antitrust/

Pathetic Baltic nations at it again. So cut Lithuania of gas and let them get what they want - sigbificantly expensive LNG.

Just stop the gas flow to this little parasites and period. Let us see how they survive without russian gas. I tell that all the time, russia has IMMENSE political and economical power it just does not use it. Russia alone could destroy all economies in EU, by not supplying gas, by cutting timber, minerals, precious metals and Metals overall which would terminate german automotive and industrial machinery and tooling market which it lifes on. Europe can not survive or make progress without russian resources, they themselfs have almost no resource production that would cover their needs and they are absolutle bound to buy russian resources, highest quality and most modest price.

Parasites? Lithuania always pays for gas on time. Gas prices are high too, it's not like Lithuania are getting it for free or stealing like Ukrainians. Since LNG arrived GAS prices actually decreased, GAZPROM offered discounts and gas price for user went from 20 to 40 percent less. So I don't know why ANTI-TRUST case is being pushed ahead, it doesn't hold any water. It's the GOV that actually pushes it to achieve some political points. Nothing to do with economy.
Russia will not cut any gas supply to all Europe as it needs money as much as Europe needs gas. It would go tits up along with freezing Europe if that happens.
I would suggest Lithuanian gov to actually diversify before doing such bold moves as Lithuania might end with even higher gas prices.

flamming_python wrote:

Cyberspec wrote:Once that goes, it's a deal breaking event as far as their Ukr project goes.

The complete cancellation of transit through the Ukraine is still a 4-year distant prospect; at which point it will be just the coup de grace anyhow; the Ukraine's economy would have long been annilihated by then if things carry on the way they're going now, even the continued existence of the Ukraine can't really be assumed.

True.

However, the pipelines would be controlled by Western companies and no matter the potential chaos around - the spice must flow

Regular : Lithuania is diversifying already . They are buying 25% costly LNG from Norway already . The problem is it's hurting their Industrial sector . They are forcing their citizens and industries to pay more .

sepheronx wrote:http://rt.com/business/253269-lithuania-eu-gazprom-antitrust/

Pathetic Baltic nations at it again. So cut Lithuania of gas and let them get what they want - sigbificantly expensive LNG.

Related info...

The Baltic states used to be in a pretty good position, kind of like Switzerland in relation to the EU--not part of it and therefore not having to contribute to it, but extracting maximum benefits from its proximity.

In the case of the Baltics it meant that their ports were making good profits off the transit of goods between Russia and the Rest of the World. But they began to take that cozy relationship for granted, and failed to appreciate that any deterioration of relations between Russia and the EU would hurt them first. And it did, since 70% of the cargo flows that used Baltic states' ports is now going through Russian ports. Which is forcing the Baltic states to reconsider its economic and political strategies and in the case of Latvia, is driving them into a state of near panic.

http://alex-leshy.livejournal.com/514220.html

The Baltic states used to be in a pretty good position, kind of like Switzerland in relation to the EU--not part of it and therefore not having to contribute to it, but extracting maximum benefits from its proximity.

In the case of the Baltics it meant that their ports were making good profits off the transit of goods between Russia and the Rest of the World. But they began to take that cozy relationship for granted, and failed to appreciate that any deterioration of relations between Russia and the EU would hurt them first. And it did, since 70% of the cargo flows that used Baltic states' ports is now going through Russian ports. Which is forcing the Baltic states to reconsider its economic and political strategies and in the case of Latvia, is driving them into a state of near panic.

I had no idea about this, OMG you can almost taste karma

EU fags ... LOL

"Gazprom" to increase exports to Europe by 4% in 2015

In Europe in the short form of demand growth is not visible, but is accelerated decline of gas production in Europe.

Yuan gaining importance ... which is nice for Russia too

max steel wrote:Regular : Lithuania is diversifying already . They are buying 25% costly LNG from Norway already . The problem is it's hurting their Industrial sector . They are forcing their citizens and industries to pay more .

I'm originally from Lithuania and bold part is the best joke of the day. Industries in Lithuania are so insignificant.
On other hand relying on gas is stupid and something needs to be done. My parents bought a house not long ago, they are burning wood pellets and use electrical cookers and it cost them way less than You would pay for central heating and gas in old soviet flats like most people in cities live.
Well 25% is not enough. I see no point to fuck up relationship with Russia even more when we are the only country in Baltics that actually is trying to overcome Poland on this. Russia on other hand is mostly ignoring us and it doesn't retaliate. Sure, what would Russia gain if it would cut the gas as someone mentioned? When they can actually squeeze Lithuania by the balls even further with prices.
Now LNG provided some relief. Citizens will be feeling the price of LNG eventually.
Anyway it should be lesson to Russia and Gazprom too.

25 % costly LNG i meant not replacing lithuanian's 25% energy need with lng .A major lithuanian fertilizer company is whining over costly energy as they consume a lot in order to make their fertilizers . Do you want the link ?


It should teach gazprom a lesson ? Well Gazprom exports will increase by 4% this year to europe . I didnt get your ppint ? Did they blackmail LT over high price . I had one friend from Viluanis ( smthng like that ) LT and she was a russophobe too .

Regular wrote:On other hand relying on gas is stupid and something needs to be done. My parents bought a house not long ago, they are burning wood pellets and use electrical cookers and it cost them way less than You would pay for central heating and gas in old soviet flats like most people in cities live.

You also pay more for central heating in big cities than individual heating in the countryside even in countries non dependent on Russian gas like Spain or Italy while subsidizing diesel for heating and instead of going for the easiest solution like improving efficiency or start dropping subsides orderly to adjust the market the investing in LNG, even where there's no real need for it since pipelines are already there, has been promoted like the answer for cheap energy even if it means a price hike for both private customers and industries.

max steel wrote:25 % costly LNG i meant not replacing lithuanian's 25% energy need with lng .A major lithuanian fertilizer company is whining over costly energy as they consume a lot in order to make their fertilizers . Do you want the link ?


It should teach gazprom a lesson ? Well Gazprom exports will increase by 4% this year to europe . I didnt get your ppint ? Did they blackmail LT over high price . I had one friend from Viluanis ( smthng like that )  LT and she was a russophobe too .

Nah, I don't want the link, I don't care anymore about what's going there. Less headache.
Well the lesson for Russia would be this - how far Europe is willing to go against Russia. Russia is basically playing by Europe rules, not the other way around.
And yeah Lithuanians are "insert the nation"phobes, be it poles, latvians, russias or ..lithuanians (especially if they live abroad)

Norway has overtaken Russia as Western Europe's No. 1 Gas Supplier .

Norway exported 29.2 billion cubic meters (bcm) to western Europe in the first quarter of this year, figures from Norwegian state operator Gassco show, while Russia exported 20.29 bcm, according to data from Gazprom's regulatory filing.

Exports to EU members in eastern Europe are not included in the data. Ofcourse we know the reason

It was the first time Norwegian exports have convincingly overtaken Russia's since a brief period in 2012.

max steel wrote:Norway has overtaken Russia as Western Europe's No. 1 Gas Supplier .

Norway exported 29.2 billion cubic meters (bcm) to western Europe in the first quarter of this year, figures from Norwegian state operator Gassco show, while Russia exported 20.29 bcm, according to data from Gazprom's regulatory filing.

Exports to EU members in eastern Europe are not included in the data. Ofcourse we know the reason

It was the first time Norwegian exports have convincingly overtaken Russia's since a brief period in 2012.

What a retarded way of describing the state of things (not aimed at you max steel).

The EU consists of Poland, Slovakia, Romania, Bulgaria, etc. And the EU consumes 163 billion cubic meters of
Russian gas every year. The term "western Europe" is a meaningless construct and I am quite sure that Italy
is not being counted. I don't believe for a second that Old Europe is consuming only 20.29 bcm of Russian gas.
New Europe cannot be consuming 133 bcm of natural gas.

BTW,

http://www.independent.co.uk/news/business/news/gas-imports-from-russias-gazprom-giant-to-soar-after-new-centrica-deal-10248692.html

Even the foaming at the mouth Russia hating British are increasing their consumption of Gazprom's gas.

I reported it from moscow times article . Thats why i didnt share the source .

Rosneft Seeks $200 Billion in Loans

sepheronx wrote:

Austin wrote:Rosneft Seeks $200 Billion in Loans

I was reading that and someone else in comments section pointed out that it looks more like to see how much they could borrow in short notice, based upon those numbers on how many days of borrowing. Some 30 days while another for 7 years. The other one is that there may be something huge in the works for Rosneft and they require such capital for such project. But the variety of the loans and borrowing days are way too odd.

Oil majors have massive capital expenditures on field development. And these expenditures have been getting bigger and bigger every year
as the quality of oil field finds and the number of finds has been steadily declining since the 1980s. $200 billion is peanuts. This story
highlights what I was harping on about earlier. Companies need access to loans for operations. It is not the same thing as government
which usually piles on debt because of political opportunism. Companies borrow and then pay off their loans as part of their normal cycle.

Thanks to the monetarists in the CBR and the Ministry of Finance in Russia, the capital market in Russia is very underdeveloped. And on
top of this the interest rate is simply punitive and creates a massive disincentive for companies to borrow locally. So they are forced to
borrow abroad. This leaves Russia open to currency attacks and banking sector sanctions as a means of undermining its economy. So
those monetarists, such as Kudrin, are indeed a bunch of 5th columnist dirtbags.