The US Will Not Be Able to Compete with Gazprom in Europe

August 6, 2018/in /by Rudolf Huber

I don’t expect writings from a territory that lives under the Russian shadow to be realistic about their assumptions but current gas hub prices in Europe are not really a bonfire for Gazprom. As long as Urengoy and Yamburg produce free gas they will be able to patch over. The real interesting part is going to start when Yamal must bear the brunt. Then some cost realities will start to show through.

It is questionable whether the meeting between Vladimir Putin and Donald Trump in Helsinki changed the situation regarding the gas market in Europe. Representatives of Russia, Ukraine and the European Commission in tripartite consultation worked on the distribution of roles in the theater of energy activities. One can respectfully take with a pinch of salt the words of President of the USA Donald Trump about fierce competition for Gazprom in the European market if American producers of liquefied natural gas (LNG) get involved. In reality, this just cannot be.

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