Currents - Energy Industry Insights, Volume 5, Issue 31

Russia Chooses Not to Raise Natural Gas Supplies to Europe Despite Putin’s Pledge to Help -

"Highly anticipated auction results showed Russia’s state gas giant Gazprom had not booked additional gas transit capacity for November either through the Ukrainian pipeline system or lines into western Europe via Poland."

Why this is important: Western Europe needs more natural gas this winter. Russia is happy to supply it, but only through its new Nord Stream pipeline that goes directly to Germany, under the Baltic Sea. Russia wants to avoid shipping gas through, and paying transit fees to, Ukraine or Poland, as it has for years. Russia sees Europe's gas hunger this winter as an opportunity to force acceptance of Nord Stream and effectively kill or diminish other pipelines.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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