USA take away Gazprom’s European oil and gas market
According to information from the business community, concluded by the Polish state company PGNiG contract with the U.S. Venture Global LNG annual supply of over 20 years 2 million tons of liquefied natural gas on terms Free on Board (FOB) may be economically viable only in case of delivery of LNG to customers in the Western hemisphere.
However, he emphasizes the “exceptional relationship” between Warsaw and Washington directed simultaneously against Russia and against Germany. Gazprom gas exports to Europe are not inferior to the profitability of oil exports. Gas prices follow oil prices with a lag of 6-9 months. This applies not only to European and Chinese contracts.
However, the European market, “Gazprom”, which was historically a key, definitely under attack. By policy the US is trying to oust “Gazprom” through its LNG. The sovereignty of the European powers, including such major players as Germany, the United States is limited and can only observe carefully what happens in the issue of gas expansion from the Americans. In this respect, of course, the key question is how cheap Gazprom and cheap, does it? To answer this question it is possible only by knowing our export sales on the European market in 5-10 years.
“Gazprom” always was a political paper. In the beginning traders were wondering when the action “Gazprom” will allow to buy to foreigners and admitted to trading on the RTS and on MICEX. Now estimate, what share of the market in the end will lose, if you lose, “Gazprom”? And what will be the fate of the Ukrainian transit? Fear or greed? A classic situation of high risks and high potential returns. Now the price ADR “Gazprom” is $2,35, target – $8. Buy “Gazprom” or not is your personal choice.
The Director of analytical Department,