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Oil and gas magnates want to keep pricing status quo

01.07.2013 09:19

President Vladimir Putin made Russia’s message loud and clear at this year’s Gas Exporting Countries summit: The members need to resist increasing pressure from gas consuming countries and keep sticking to the basic principles of long – term contracts.

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Comments (9) Sort by: Highest rating Oldest first Newest first

Anonymous user 03.07.2013 02:04

America doesn't need a cartel to be competitive.

Anonymous user 02.07.2013 21:28

Business agreements have escrow of collateral to prevent default?!

 

ML 02.07.2013 01:51

@00:32 "long term is so 20th century"
25 Mar 2013 - Centrica (UK) signs long-term (20 years) North American LNG export contract with Cheniere (first deliveries at 2018)
03 Jun 2013 - E.ON (Germany) signs 20-year LNG contract with Pieridae Energy (first deliveries at 2020)

Anonymous user 02.07.2013 00:48

Aslong as not all exporting & future exporting country's are represented it will be very difficult

Anonymous user 02.07.2013 00:42

RWE costumers don't buy long term anymore. RWE & others have to follow in this changing market

Anonymous user 02.07.2013 00:32

Flexibility is the key word in modern markets LNG ships offer that, long term is so 20th century

 

ML 01.07.2013 23:19

@22:20 "take or pay is NG!!"
Gas is usually sold under long-term contracts. After signing the contracts producer has to refuse supplies to others - he can't produce more. So other consumers sign contracts with other suppliers.
If you refuse to buy contracted volume of gas, what the producer can do? He can't find other consumers immediately. Gas storages are not infinite. He has to reduce production and lose money because you failed to estimate your needs.
If producer fails to fulfill the contract then you expect him to pay penalties, right? So why the consumer shouldn't pay if he fails to fulfill the contract?

Anonymous user 01.07.2013 22:20

Use of Oil & Gas are interchangeable and as such, their prices may be linked but take or pay is NG!!

 

ML 01.07.2013 19:07

Putin said recently about the US shale boom:
- US shale gas production cost is several times higher
- with liquefaction and transportation costs the price for EU will be about $400-450, equal to Gazprom's price
- "It may have certain advantages for the US market, at least today, but I don’t see any serious changes for the global gas energy market."

Western propaganda headlines:
US shale gas is undermining Russia's Putin
Gazprom crisis casts shadow over Putin
The shale-gas revolution unnerves Russian state capitalism
How fracking weakens Gazprom, the bedrock beneath Putin’s feet
Putin fears shale gas competition

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