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Pipeline Deals a’Plenty for Gazprom

FILE In this Friday, April 9, 2010 file photo a Russian construction worker speaks on a mobile phone in Portovaya Bay some 170 kms (106 miles) north-west from St. Petersburg, Russia, during a ceremony marking the start of Nord Stream pipeline construction. Russian President Vlladimir Putin on Monday, Oct. 8, 2012 announced that Russia has opened a new euro6.4 billion ($8.3 billion) pipeline under the Baltic Sea directly linking western Europe with Siberia’s vast natural gas reserves. (AP Photo/Dmitry Lovetsky, file)

Putin has a firm grasp of the economics of the difference in cost between Russian pipeline gas and U.S. produced LNG.

He can also be generous given that Gazprom’s exports to Europe and Turkey are up 12% year over year, as reported by RT.

But, for Poland, the issue runs much deeper. It is about independence from both Moscow and Brussels. He understands this as does Trump and it’s why the two likely agreed that fighting over Poland’s gas market is not on the table. We’ll know if this is true if Trump goes through the motions of vetoing the expanded sanctions bill currently in front of the House or if the House guts the energy portion of the bill that’s aimed squarely at Nordstream-2.

So, it is not Trump’s comments that are bullish for U.S. LNG exports, but rather Putin’s that is the green light for companies like Cheniere Energy (CQP) to be able to count on increasing LNG exports to Europe….

Read the rest at Seeking Alpha

 

 

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