First absolute hate post in a while…

06. Februar 2022

Arti­cle: Why the EU needs Rus­si­an ener­gy giant Gazprom


Gaz­prom uses its mar­ket power by influ­en­cing pri­ces through the amount of gas that it sup­plies to Euro­pe,” ener­gy expert Georg Zach­mann from the Brussels-based Brue­gel think tank told DW.”


The­re is a kind of com­pe­ti­ti­on bet­ween the Euro­pean regu­la­tors who are try­ing to crea­te a mar­ket with uni­fied pri­ces and Gaz­prom which is try­ing to impo­se dif­fe­rent pri­ces in dif­fe­rent coun­tries,” exp­lai­ned Zachmann.

While Gaz­prom insists that it has hono­red all its long-term sup­ply com­mit­ments, Zach­mann said that the com­pa­ny was actual­ly sup­ply­ing less gas to the mar­ket with short-term contracts. 

Zach­mann said that the short-term mar­ket had beco­me incre­a­singly important in recent years becau­se the­re was an attempt to beco­me less depen­dent on Gaz­prom in the long run.

So, that Gaz­prom and with it rus­sia doesnt want to rely on short term con­trac­ting, becau­se it encom­pas­ses an attempt to beco­me less depen­dant on Gaz­prom over­all is… wait for it…

Gaz­prom is ful­fil­ling its con­tracts, that is true, but only at the lowest level of its com­mit­ments,” Euro­pean Com­mis­si­on Pre­si­dent Ursu­la von der Ley­en poin­ted out recent­ly. She said that other sup­pliers had incre­a­sed their deli­ve­ries in view of the rapidly rising demand and record prices. 

Von der Ley­en added that Gaz­prom was beha­ving in a stran­ge way, con­si­de­ring that more gas was not being sup­plied des­pi­te high demand. She also told the Ger­man dai­ly Han­dels­blatt that the fact that the com­pa­ny belon­ged to the Rus­si­an sta­te rai­sed doubts as to its reliability.

STRANGE BEHAVIOR con­si­de­ring that not more gas was sup­plied, given the high demand.

But Gaz­prom is ful­fil­ling its con­tracts, thats true.

But this is all rai­sing doubts, becau­se rely­ing on the Rus­si­an sta­te rai­ses doubts on relia­bi­li­ty overall.

But Gaz­prom is ful­fil­ling contracts.

Yes, but we expec­ted more than just ful­fil­ling contracts.

While threa­tening sanc­tions at the same time.

edit: Short inter­lu­de, to dilu­te the hate in this pos­ting with a litt­le bit of comedy.

And then, when ger­man sup­pliers final­ly put in a big­ger order a few days ago, Gaz­prom reports, that capa­ci­ty on the Ukrai­ne pipe­line was boo­ked wit­hin a day, and deli­very star­ted wit­hin a day or two…

But its stran­ge beha­vi­or, that it was­n’t more, befo­re that happened.

Becau­se Gaz­prom was just ful­fil­ling their contracts.

Becau­se of this excel­lent effing logic, and cer­tain­ly not becau­se of any alte­rior moti­ves, UvdL announ­ced the fol­lowing in the same Inter­view with the “Han­dels­blatt”.

If Gaz­prom were to recei­ve inst­ruc­tions from the Krem­lin to stop sup­ply­ing gas to the EU, the­re could be signi­fi­cant shortages.

Von der Ley­en said that she did not belie­ve it would come to that. Sin­ce the Rus­si­an eco­no­my is so depen­dent on ener­gy exports, it would not make sen­se to jeo­par­di­ze its rela­ti­ons­hip with its big­gest cli­ent and investor.

But she told Han­dels­blatt that the EU and the US were working to incre­a­se sup­plies of lique­fied natu­ral gas from Qatar or the US. Nego­tia­ti­ons are to take place this com­ing Mon­day in Washing­ton DC

So becau­se we dont belie­ve, that Rus­sia would cau­se signi­fi­cant shor­ta­ges of gas sup­plies in Euro­pe out of their own voli­ti­on, basi­cal­ly becau­se of the ent­i­re eco­no­mic design of the ven­ture to begin with, the EU now has to work with the US to incre­a­se sup­plies of LNG from Qatar, or the US.


edit: Bloom­berg arti­cle has more details:

Tra­ders are watching every move by Europe’s top sup­plier, focu­sing on how much gas is deli­ve­r­ed bey­ond con­trac­ted volu­mes. Auc­tions of pipe­line capa­ci­ty for Decem­ber run next Mon­day, which will cast a light on whe­ther extra ship­ments could mate­ria­li­ze. Addi­tio­nal boo­kings may be likely if Gaz­prom sees pro­gress in the cer­ti­fi­ca­ti­on of the con­ten­tious Nord Stream 2 pipe­line, ana­lysts have said.

News arti­cle was from Novem­ber 10th 2021. That was after Gaz­prom boo­ked pipe­line capa­ci­ty over Ukrai­ne to deli­ver accord­ing to con­tract obligations.

So lets sum­me­ri­ze. Becau­se Euro­pe moved away from long term pro­cu­re­ment deals, end­an­ge­ring ener­gy secu­ri­ty, while Ger­ma­ny set into action plans to exit from coal and nuclear ener­gy simul­ta­ne­ous­ly, and stop­ped North Stream 2, on the poli­ti­cal level, becau­se of U.S. inter­ven­ti­on at the licen­sing sta­ge, Gaz­prom stop­ped to sup­ply spot mar­kets with (by then more expen­si­ve) natu­ral gas - at “expec­ted volu­mes”, expec­ted, becau­se it was the inten­ded goal of the EU to decre­a­se ener­gy depen­den­cy on rus­sia, so they went into day tra­ding it in lar­ger volu­mes, and spot mar­kets ins­tead -- which now has cau­sed UvdL to anoun­ce, that this would have been “stran­ge beha­vi­or” of Gaz­prom - that they didnt just sup­ply the dayt­ra­ding sec­tor with the same amount as befo­re, and ther­eby causing ques­ti­ons over rus­si­an relia­bi­li­ty in the ener­gy pro­cu­re­ment sec­tor - while at the same time sta­ting, that the rus­si­an eco­no­my would fal­ter, if they ever did so (at any extent that would end­an­ger EU ener­gy secu­ri­ty), and that it wasnt very likely -- and becau­se of that, its now in the inte­rest of ener­gy sup­ply sta­bi­li­ty to diver­si­fy pro­cu­re­ment, and go with LNG from the US or Qatar (who knows, cer­tain­ly not UvdL), which needs an exten­si­on of the LNG infra­st­ruc­tu­re wit­hin the EU, which the EU is backing, but which is usual­ly pri­va­te­ly fun­ded (with invest­ment gua­ran­tees given out), and only just beca­me inte­res­ting for inves­tors in the sec­tor, becau­se of rising gas pri­ces. Oh and that on its own (diver­si­fi­ca­ti­on) will rai­se effec­ti­ve pro­cu­re­ment pri­ces. Also slowing down the sus­tainab­le ener­gy tran­si­ti­on - which still is the main pro­ject of the UvdL pre­si­den­cy, apparently.

No - checks out. Why should jour­na­lism report anything else. Or ask any questions.

Oh, and btw. the LNG indus­try has a new lea­ding expor­ting nati­on.

Oh, and the sin­gu­lar cau­se for hig­her US natu­ral gas pri­ces was “the arc­tic cold snap”, of course.

The­res good news in all this as well, of course -
Gold­man: Ukrai­ne Con­flict Could Dou­ble EU Natu­ral Gas Prices

WAIT THE UKRAINE CONFLICT? I THOUGHT IT WAS RUSSIAS UNRELIABILITY ON THE SPOTMARKETS! (Becau­se if it wasnt, it would have been EU thre­ats of sanc­tions, play­ing a major role, surely…)

AM I GOING INSANE, OR IS IT THE WORLD AROUND ME? (Sh*t they are lying to us!™)

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