Baltic States – CIS, Energy, EU – Baltic States, Gas, Legislation

The foreign media report that in 2013 supplies for liquefied natural gas (LNG) to the European market, at which in essence spot trading was based, has dropped sharply. The cause was reorientation of suppliers to more profitable in terms of price Asian markets. In 2012 Qatar, located at approximately equal distances from the main European and Asian consumers, reduced sharply supplies to Europe and in 2013 Algeria, which is situated at a distance of direct sight from the European Union, undertook the same steps.

As a result, the gas shortage in the EU has already reached 30% of standard consumption. The situation could get worse in the winter due to the fact that Gazprom, the main supplier of gas to the EU, declined in 2013 from the injection of gas into underground gas storages (UGSs) in Ukraine because of disagreements with the latter. In this regard, experts are already predicting that in winter Ukraine will begin massive selection of gas from Gazprom’s transit pipelines, leaving gas suppliers in Europe without fuel.

As a consequence, the real shortage of gas in the EU will reach 50%. In this case, Gazprom, which thrust into the straitjacket of the third energy package by the Europeans themselves, will not be able to increase exports to the EU and the Nord Stream gas pipeline, as it must reserve up to 50% of its capacity for mythical alternative suppliers. There are simply no other manufacturers in the eastern Scandinavia and the Baltic states, except Gazprom, but reservation of capacity is still required.

Gazprom, which is under the anti-trust proceedings in the EU, deliberately does not prevent the deterioration of the situation, clearly showing the Europeans that nobody will supply gas to the EU at bargain prices, neither friends in Qatar nor Algerian brothers. The purpose of the monopoly is the desire to prove that Europe can be saved only by old Gazprom working on long-term contracts and the rules adopted before the establishment of the European Union. Gazprom owns all rights (including legal ones) to demand the maintenance of the rules of game in the European gas market agreed with the European Economic Community still without single currency in cash, and it will do this.

http://abc.az/eng/news_02_09_2013_75806.html