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Russian and U.S. energy leaders to meet

Energy department heads from 2 of the world's leading natural gas producers meet this week.

Russian and U.S. energy leaders to meet Russian and U.S. energy leaders to meet


Moscow, June 26 - Neftegaz.RU. Energy department heads from 2 of the world's leading natural gas producers, Russia and the United States, meet this week in Washington, the Kremlin said.

 

Washington host's this year's World Gas Conference, which kicks off on June 26. U.S. speakers include Energy Secretary Rick Perry and U.S. Sen. Lisa Murkowski. She is a vocal supporter of U.S. oil and LNG exports.

 

Russian Energy Minister Alexander Novak said from the sidelines of a meeting of the OPEC during the weekend he could sit down on June 26 with his U.S. counterpart during the conference.

«We will discuss gas issues, the situation on the world markets [and] we will have the opportunity to discuss bilateral cooperation issues» he was quoted by Tass as saying.

 

As part of his «Make America Great Again» slogan, U.S. President Donald Trump said energy dominance was a vital strategy for a country on pace to become a global production leader for oil and natural gas. U.S. energy supplies on the global market, his national security strategy reads, could help U.S. allies overseas boost energy security by countering «those that use energy to coerce.»

 

A risk assessment from the U.S. Energy Department ranked Ukraine the lowest when it came to energy security. Most of the Russian gas bound for the European market runs through Soviet-era pipelines in Ukraine, where separatist action and sanction spillover leaves energy supplies vulnerable.

 

«While it is true that increases in natural gas supplies and supply diversity - there are now 26 countries producing at least 1 quadrillion British thermal units (Btus) of gas in 2016 versus 9 in 1990 - have moderated market risks, these benefits have been more than offset by higher risks accompanying rising production from countries with high risk profiles, such as Russia, Iran, Qatar, and Algeria,» part of the report read.

Russia aims to diversify its options with pipelines that would avoid Ukrainian territory. The U.S., meanwhile, has pushed into Russian space by sending LNG to countries like Poland, which has few supply options apart from Russia.

 

Twinning the capacity of the Nord Stream gas pipeline through the Baltic Sea is among Russia's diversification strategies, though it's faced pressure from Western allies. Russia needs only a handful of permits from Baltic Sea littoral states to continue, though Tass reports Danish officials have slowed the approval process as a way to avoid irritating its U.S. ally.

 

Author: Daniel J. Graeber

Source : Neftegaz.RU