China’s decision to boost natural gas deliveries from central Asia while supply talks with OAO Gazprom fail to produce a contract may keep Russia’s gas export monopoly reliant on European buyers, according to EON AG’s Russian unit.
“It is my opinion that Russia is losing the grip on negotiations” with China, Reiner Hartmann, head of E.ON Ruhrgas AG in Russia, said at a conference in Moscow today.
China has turned to Turkmenistan in central Asia as supply talks with Russia, the world’s largest holder of gas reserves, dragged on for years.
Russia has sought to reach an agreement with its Asian neighbor at at European price levels this year.
Russia has threatened Europe that it may turn to Asia at the expense of the European Union, which is implementing regulations that may limit Gazprom’s pipeline control.
Turkmenistan’s agreement last month to double deliveries to China “gives a different outlook for the future,” Hartmann said. “It plays into the hands of the Europeans.”
Russia planned to clinch a deal to ship 30 billion cubic meters of gas a year to China during President Hu Jintao’s visit to Russia in June.
Gazprom Deputy Chief Executive Officer Alexander Medvedev said at the time the two sides may reach an accord later this year.
Gazprom plans to focus on developing gas output and infrastructure in Russia’s Far East after talks on energy security with the European Union, including the so-called third energy package, which would require Gazprom to sell transit assets, hit a “dead-end,” Energy Minister Sergei Shmatko said in October.
European regulators may grant an exemption to a planned Gazprom pipeline after talks next year, he said Dec. 1.
Hu and his Turkmen counterpart Gurbanguly Berdymukhammedov signed an accord for 65 billion cubic meters of central Asia gas to be supplied to China, the Turkmen state said on its website on Nov. 24. That is almost as much as Gazprom plans to supply to China via two pipelines that are yet to built.
bloomberg.com
“It is my opinion that Russia is losing the grip on negotiations” with China, Reiner Hartmann, head of E.ON Ruhrgas AG in Russia, said at a conference in Moscow today.
China has turned to Turkmenistan in central Asia as supply talks with Russia, the world’s largest holder of gas reserves, dragged on for years.
Russia has sought to reach an agreement with its Asian neighbor at at European price levels this year.
Russia has threatened Europe that it may turn to Asia at the expense of the European Union, which is implementing regulations that may limit Gazprom’s pipeline control.
Turkmenistan’s agreement last month to double deliveries to China “gives a different outlook for the future,” Hartmann said. “It plays into the hands of the Europeans.”
Russia planned to clinch a deal to ship 30 billion cubic meters of gas a year to China during President Hu Jintao’s visit to Russia in June.
Gazprom Deputy Chief Executive Officer Alexander Medvedev said at the time the two sides may reach an accord later this year.
Gazprom plans to focus on developing gas output and infrastructure in Russia’s Far East after talks on energy security with the European Union, including the so-called third energy package, which would require Gazprom to sell transit assets, hit a “dead-end,” Energy Minister Sergei Shmatko said in October.
European regulators may grant an exemption to a planned Gazprom pipeline after talks next year, he said Dec. 1.
Hu and his Turkmen counterpart Gurbanguly Berdymukhammedov signed an accord for 65 billion cubic meters of central Asia gas to be supplied to China, the Turkmen state said on its website on Nov. 24. That is almost as much as Gazprom plans to supply to China via two pipelines that are yet to built.
bloomberg.com
No comments:
Post a Comment