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Author Topic: Russian Gas  (Read 239 times)

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Offline WestCoast

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Russian Gas
« on: October 12, 2015, 10:42:06 AM »
Poland has opened an LNG terminal in the Baltic port city of Swinoujscie. The terminal will be run by state-owned Polskie LNG. At the moment the terminal only has one supply contract, with Qatargas, and it actively seeking others. Polskie LNG will also decide in the second half of 2016 on whether to expand the terminal to increase capacity to 7.5 bcm, nearly half of Poland's annual demand.

All of this development of LNG terminals and gas pipelines linking countries in eastern Europe is is response to be independent of Russian gas. Not good for the Russian energy sector. If oil and gas prices remain low Russians going to have to search for customers in other parts of the world. Delivering gas to countries outside of Europe and Asia will cost the Russian energy sector more, again not good for a country dependent on the energy sector for so much of its foreign income.

http://www.reuters.com/article/2015/09/16/poland-lng-capacities-idUSL5N11M1NJ20150916
http://www.bloomberg.com/news/articles/2015-10-12/poland-opens-lng-terminal-pledges-to-end-russian-gas-dependence?cmpid=yhoo
Ipsa scientia potestas est. Knowledge itself is power.   Sir Francis Bacon

Offline andrewfi

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Re: Russian Gas
« Reply #1 on: October 12, 2015, 11:12:14 AM »
The Lithuanians are finding out that importing LNG is not the solution to any problems. In fact it creates them.

Bearing in mind that the economics of the situation are very similar for both countries it is hard to imagine that the situation can be any different in Poland (although somebody is betting plenty of government money on an alternate outcome.)
In Lithuania the government, finding that LNG was the red headed runt of the energy supply business - and costly to boot - resorted to placing a levy upon industrial users who don't use LNG to subsidise the overall cost. The biggest users of natural gas in the country are fertiliser manufacturers and they made it clear that they'd simply cease production if the proposed levy was imposed. It looks now as though there is going to be a universal levy for gas consumers - so the problem is not solved just shared more.

The thing to remember is that LNG is costly. Costly to buy, costly to store and costly to gasify. Natural gas, on the other hand, is cheap as chips.
The cost of a terminal is around $190,000 per day! The Lithuanians are trying to get out of their lease deal.

More info about the reality of LNG import: CLICK HERE!

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