It would be good to have the component of liquefied natural gas in the portfolio, as we believe it has very good price prospects.
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The Russia-Ukraine gas supply dilemma could see a new development as the countries continue political and commercial retaliation, Kallanish Energy learns.
Russian gas shipments to Ukraine recommenced in October after Gazprom got almost half of a promised $500 million prepayment from Kyiv, the AP says, after Russia lowered the price it charged Ukraine to about $230 per 1,000 cubic meters, about the same level granted to neighboring countries, down from $251.
Tensions between Russian Federation and Ukraine have escalated since Russian Federation annexed Crimea from Ukraine in March 2014 and because of Russia’s support for separatist rebels in eastern Ukraine.
In Moscow, the Chief of the Russian monopoly Gazprom, Alexej Miller, said: “there are no new advances or new orders”.
“Supplies are being stopped until new payments arrive from the Ukrainian company”, he said. Ukraine has banned all Russian planes from using its airspace and exports of Russian gas to Ukraine have been halted by state-controlled giant Gazprom, BBC reported.
Ukraine serves as a key transit route of Russian gas to Europe.
A state of emergency was declared there after Russian media reported that two pylons in the Kherson region of Ukraine north of Crimea had been blown up by Ukrainian nationalists, cutting electricity supplies to most of the territory.
About 15% of gas used in Europe travels through Ukraine. Parts of Ukraine’s industrial heartland are in ruins.
Last month, Kiev barred all Russian airlines from flying to Ukraine in a move that prompted a retaliatory response from Moscow. Moscow had warned a day earlier it could also halt coal delveries to Ukraine.
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Supplies restarted after the European Commission brokered an interim deal between the former Soviet allies. Russia may seek reprisals as Ukraine delays restoring the power supplies, Russian Energy Minister Alexander Novak said Tuesday.
