Ukraine rejects Russia Gazprom gas price hike

[bryant.coleman]

I simply can't fathom this. Why build LNG terminals in Sakhalin to supply most of the LNG from there to Japan which is just a few (hundred) miles away?

I don't know. Perhaps the ocean is too deep to build a natural gas pipeline there.

Russia and Japan in Agreement on Natural Gas Deal

http://www.nytimes.com/2012/09/09/world/europe/russia-and-japan-move-forward-on-natural-gas-deal.html?_r=0

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[Balthazar]

Due to safety purposes, remember what happened to Fukushima.  I suppose that building gasline there is relatively risky.

[deisik]

I simply can't fathom this. Why build LNG terminals in Sakhalin to supply most of the LNG from there to Japan which is just a few (hundred) miles away?

I don't know. Perhaps the ocean is too deep to build a natural gas pipeline there.

Russia and Japan in Agreement on Natural Gas Deal

http://www.nytimes.com/2012/09/09/world/europe/russia-and-japan-move-forward-on-natural-gas-deal.html?_r=0

The maximum depth in the La Perouse Strait between Sakhalin and Hokkaido is only 40 meters. I think it has more to do with geopolitical issues rather than technological ones...

[Nemo1024]

As Balthazar noted, the tectonic situation there is not favourable. On the other hand, neither it is in Turkey, yet South stream is built in that area, so you might be right with the political question.
Plus, if US asks politely, Russia might consider exporting gas to the US from the same terminal, so that Us can later sell it to Europe...   

[deisik]

As Balthazar noted, the tectonic situation there is not favourable. On the other hand, neither it is in Turkey, yet South stream is built in that area, so you might be right with the political question.
Plus, if US asks politely, Russia might consider exporting gas to the US from the same terminal, so that Us can later sell it to Europe...   

A little correction, the South Stream pipeline is only being planned yet, the pipeline you refer to is called Blue Stream...

[deisik]

Also, there are numerous gas pipelines in Japan itself, so I don't think this issue can't be effectively dealt with



This article gives some insight on PNG vs LNG question...

[bryant.coleman]

A little correction, the South Stream pipeline is only being planned yet, the pipeline you refer to is called Blue Stream...

Construction work for South Stream was started in December 2012, although the European Union tried to disrupt it. The work is expected to be finalized by January 2018.

http://www.euractiv.com/sections/energy/gazprom-lures-austria-south-stream-branch-301846

[deisik]

A little correction, the South Stream pipeline is only being planned yet, the pipeline you refer to is called Blue Stream...

Construction work for South Stream was started in December 2012, although the European Union tried to disrupt it. The work is expected to be finalized by January 2018.

http://www.euractiv.com/sections/energy/gazprom-lures-austria-south-stream-branch-301846

Anyway, it doesn't work yet, so it is impossible to say how earthquakes will affect its operation. I doubt they will have significant effect. Steel is not stone after all, and some precautionary measures are surely employed...

[deisik]

EU set to help Ukraine pay gas bills

According to Reuters, European Energy Commissioner Guenther Oettinger is working on a plan to help Ukraine pay some of its gas bills to Russia, saying there was "no reason to panic" about Russian gas supplies to Europe. "We are in close contact with Ukraine and its gas company to ensure that Ukraine remains able to pay and the debts that the gas company has to Gazprom do not rise further," he said...

Hey, this was expected, gas should flow no matter what!

[bryant.coleman]

Anyway, it doesn't work yet, so it is impossible to say how earthquakes will affect its operation. I doubt they will have significant effect. Steel is not stone after all, and some precautionary measures are surely employed...

There are a number of major gas pipelines passing through California, one of the world's most seismically active zones. I have never heard about any disruptions resulting from earthquake there. So there must be technology available for the construction of Earthquake-Proof Gas Pipelines.

[Nemo1024]

Just hours after some Western media were giving "hopeful" reports that there'll be no gas deal with China, the agreement came through:

Russia and China seal historic $400bn gas deal
http://rt.com/business/160068-china-russia-gas-deal/

The price is a secret, but as Medvedev put it, comparable to the price paid by the European countries.

[bryant.coleman]

^^^ Personally I believe that Russia should concentrate more on the Eastern market (China, Korea and Japan). Unlike the saturated European market, the Oriental market have been growing rapidly in the recent years.

[Nemo1024]

Interesting, Europe started voicing their protests:

Barroso to Putin: Gazprom responsible for steady transit to Europe
http://rt.com/news/160464-ukraine-gazprom-europe-putin/

“It … continues to be Gazprom’s responsibility to ensure the deliveries of the required volumes as agreed in the supply contracts with European companies,” European Commission President wrote in a letter published Wednesday.

“I also recall that the European Union expects the Russian Federation to activate the early warning system well in advance if ever the need arises,” Barrosso added.

What he is saying is: Ukraine can steal the gas on it's way, but Russia is responsible for the gas coming through?

If I remember correctly Putin did write an open letter a month or so ago, and the warning signs have been there since the previous West-financed Orange revolution.

[Sithara007]

Interesting, Europe started voicing their protests:

Barroso to Putin: Gazprom responsible for steady transit to Europe
http://rt.com/news/160464-ukraine-gazprom-europe-putin/

“It … continues to be Gazprom’s responsibility to ensure the deliveries of the required volumes as agreed in the supply contracts with European companies,” European Commission President wrote in a letter published Wednesday.

“I also recall that the European Union expects the Russian Federation to activate the early warning system well in advance if ever the need arises,” Barrosso added.

What he is saying is: Ukraine can steal the gas on it's way, but Russia is responsible for the gas coming through?

If I remember correctly Putin did write an open letter a month or so ago, and the warning signs have been there since the previous West-financed Orange revolution.

Seems like Europe is afraid of losing the cheap Russian gas. The Russia-China deal over natural gas is really important. It was a major blow to the EU. The EU can no longer dictate the movement of Russian gas.

[deisik]

Interesting, Europe started voicing their protests:

Barroso to Putin: Gazprom responsible for steady transit to Europe
http://rt.com/news/160464-ukraine-gazprom-europe-putin/

“It … continues to be Gazprom’s responsibility to ensure the deliveries of the required volumes as agreed in the supply contracts with European companies,” European Commission President wrote in a letter published Wednesday.

“I also recall that the European Union expects the Russian Federation to activate the early warning system well in advance if ever the need arises,” Barrosso added.

What he is saying is: Ukraine can steal the gas on it's way, but Russia is responsible for the gas coming through?

If I remember correctly Putin did write an open letter a month or so ago, and the warning signs have been there since the previous West-financed Orange revolution.

Seems like Europe is afraid of losing the cheap Russian gas. The Russia-China deal over natural gas is really important. It was a major blow to the EU. The EU can no longer dictate the movement of Russian gas.

I don't think the Russia-China gas deal is so important for Europe as many would like to think. First of all, China is going to consume only one forth of Europe's yearly consumption of Russian gas. Second, Russia will sell Europe gas at any price which Europe is ready to pay, thereby maximizing total profits (and all sanctions aside)...

[bryant.coleman]

I don't think the Russia-China gas deal is so important for Europe as many would like to think. First of all, China is going to consume only one forth of Europe's yearly consumption of Russian gas. Second, Russia will sell Europe gas at any price which Europe is ready to pay, thereby maximizing total profits (and all sanctions aside)...

I think in the first stage, China will be consuming 68 billion cubic meters of Russian gas per year (38 b cu.m in the beginning, increasing to 68 b cu.m after a few years) . Compare that to the imports of 38 billion cubic meters, which Germany makes every year. So it is very significant.

[deisik]

I don't think the Russia-China gas deal is so important for Europe as many would like to think. First of all, China is going to consume only one forth of Europe's yearly consumption of Russian gas. Second, Russia will sell Europe gas at any price which Europe is ready to pay, thereby maximizing total profits (and all sanctions aside)...

I think in the first stage, China will be consuming 68 billion cubic meters of Russian gas per year (38 b cu.m in the beginning, increasing to 68 b cu.m after a few years) . Compare that to the imports of 38 billion cubic meters, which Germany makes every year. So it is very significant.

Germany is not all Europe. If I'm not mistaken, Gazprom supplied Europe with 139 billion cubic meters of gas in 2012 (don't have newer figures) which is still twice as many than the planned consumption by China in a few years. But this is not my point altogether!

[mladen00]

They wanna go to the EU, and now Russia gave them EU price

[bryant.coleman]

Germany is not all Europe. If I'm not mistaken, Gazprom supplied Europe with 139 billion cubic meters of gas in 2012 (don't have newer figures) which is still twice as many than the planned consumption by China in a few years. But this is not my point altogether!

This image gives a better idea of the situation.



Germany is the single largest importer of the Russian gas in Europe.

[deisik]

Germany is not all Europe. If I'm not mistaken, Gazprom supplied Europe with 139 billion cubic meters of gas in 2012 (don't have newer figures) which is still twice as many than the planned consumption by China in a few years. But this is not my point altogether!

Germany is the single largest importer of the Russian gas in Europe.

Yes, with less than one quarter of the total consumption with 39% dependence on Russian gas. Still not Europe, by any means...