My light, mirror, tell me

My light, mirror, tell me

Irina Badmaeva

After a sharp jump, gas prices in Eu-rope began to decline. Blue fuel is getting cheaper because Am-ericans are driving tank-ers to the Old World more and more. Will they be able to grab a piece of the “European gas pie” – in the material RIA Novosti.
Changed course
On December 22, ships carrying liquefied natural gas (LNG) from the United States to Asia were deplo-yed halfway to Europe, The Financial Times reported.
The route was changed due to prices. At the beginning of last week, quotations came close to $ 2300 per thousand cubic meters – a historical maximum.
“American companies supply LNG on the basis of who pays the most,” expl-ains Khadzhimurad Belkh-aroev, associate professor of the International Econo-mic Security Program at the RUDN University Institute of World Economy and Business.
Gas rose in price throug-hout the past year. In au-tumn and winter, the records were updated several times. However, Ame-ricans preferred the growing Asian market. First of all, China, India and Japan.
“In the midst of the energy crisis in the EU, the US ignored its strategic allies, sending fuel to Asia in order to gain a foothold there and generate additional profit,” the expert clarifies.
Now, when prices in the region have cooled down, the course has changed to Europe. 20 tankers are rushing there. Another 14 are at a low start. On this news, quotations of blue fuel moved down. However, they still exceed last year’s tenfold.
“LNG producers promise that they will ensure en-ergy security for the Eur-opean Union. But they are in no hurry to bind themselves to any long-term contracts. They prefer to act according to the situation. American gas workers are ready to fill any vacant nic-hes,” said Peter Pushkarev, a leading economist at the TeleTrade information and analytical center.
Now they simply take advantage of favorable conditions that can last for six months or longer. “But it is unlikely that the producers and suppliers of LNG from the United States seriously expect to capture the share of the European market,” the source said.
Overseas understand that with the launch of Nord Stream 2, Europe’s need for LNG will decrease. “In addition, prices will drop three times, even taking into account the global inflation for fuel and materials. American LNG in the European market is only able to roll back quotes from peak values, which we are seeing,” the specialist notes.
Be patient
The commissioning of Nord Stream 2 was postponed, this time due to the German bureaucracy. In mid-November, the Federal Grid Agency suspended the certification of the project. The energy regulator demanded that the legal structure of the independent operator Nord Stream 2 AG (headquartered in the Swiss city of Zug) be brought in line with local laws. It is necessary to create a subsidiary German enterprise – the owner and operator of the part of the pipeline that runs through the territory of the Federal Republic of Germany.
The hitch made traders nervous. “The market expected a launch in January, which would fill European gas storage facilities by 26 percent (17.2 billion cubic meters),” says Maxim Chernyaev, associate professor, deputy dean of the RUDN University Faculty of Economics.
As a result, gas quotes in Europe soared by 17 percent in a day. This trend continues to this day.
The demands of the Germans will be satisfied, Gazprom assures. They will create a “daughter”, transfer assets to it and again submit documents to the Federal Network Agency. After – the decision is up to the European Commission.
Therefore, most likely, gas will be allowed through the pipeline not earlier than May, although the construction was completed in early September. The Kre-mlin is urging to be patient.
My light, mirror, tell me
“The European authorities depend on agreements with the American establishment. Most likely, the delay in certification is an unofficial part of the deal with the Biden administration. Washington was promised six to nine months of sales to Europe at the current inflated prices due to shortages. In exchange, the White House will stop sticking in the wheels. “Nord Stream – 2”, – says Pyotr Pushkarev.
When this transition period is over, the absence of large purchases of pipeline gas on the spot will help the Europeans to bargain with Gazprom on long-term contracts. Naturally, the final price will be higher than in previous years. But clients will try to achieve favorable conditions.
In the meantime, only accusations fly to the address of “Gazprom”. Suspicions of provoking a crisis are groundless and unacceptable, “or, more simply, lies and lies,” stressed the official representative of the concern, Sergei Kupriyanov. Gazprom is ready to pump additional volumes to Europe within the framework of existing contracts. Prices there are lower than spot prices.
“All problems in Western Europe are created for themselves, and there is no need to blame Gazprom for this. It is better to look in the mirror,” said Sergei Kupriyanov.
According to him, some European clients, in particular from France and Germany, having chosen contract volumes, no longer fill out applications.
In the outgoing year, 50.2 billion cubic meters were pumped to Germany: 5.5 percent more than last year. Deliveries to Italy, Turkey, Bulgaria, Serbia, Denmark, Finland and Poland also increased.

The post My light, mirror, tell me appeared first on The Frontier Post.