Sunday, January 31, 2016

European companies seal gas pipe deal with Gazprom

Like it or not, five energy companies from Germany, Austria, Britain, the Netherlands and France signed a contract with the Russian gas group Gazprom to build the Nord Stream-2 pipeline on the Baltic seabed. Incidentally, the Czech Republic imports Russian natural gas from the Nord Stream-1 pipeline via Gazela and OPAL pipelines.

According to forecasts, prices of natural gas exported by Russia to Western Europe will average $200 a thousand cubic meters this year, compared with $238 a thousand cubic meters in 2015.

Readers of The Ukrainian Times know that Gazprom controls 15% of the world’s known natural-gas reserves. The Russian group is going to be passing along gas for a long, long time. Like a coiled spring, Gazprom stocks are cheap to start with. Not having any idea of what would happen, some Western investors think the cheap bird in their hands is a better bet than the expensive birds somewhere in the future bush.

No comments:

Post a Comment