MOSCOW—U.S. exports of LNG to Europe will be the main competition for Gazprom this year, the Russian gas giant said on March 21 in an abrupt change of tone toward gas supplies from the United States.
“It is obvious that LNG will be the main rival in the battle for the European consumer,” Sergei Komlev, head of contracts structuring, said in comments published in Gazprom’s magazine on Thursday.
Gazprom has previously dismissed concerns that U.S. LNG supplies to Europe could have an impact on its business, with officials saying that Russian gas will always be cheaper than imports from the United States.
U.S. LNG has flooded Europe since October last year, reshaping gas flows on the continent and leading to high storage levels and narrower price spreads.
The parties must now renegotiate a deal that would transfer Breitburn's Permian reserves to investors including Elliott and WL Ross through their participation in a $775 million rights offering.
Sustained lower oil prices may lead to Permian consolidation, the return of tough times to other shale plays and U.S. E&Ps helping rebalance global inventories.
A big crowd turned out for an afternoon honoring industry leaders representing all facets of the energy sector.