Gas Politics Take Center Stage In Ukraine Crisis

21 Apr 2014: Russia’s annexation of Crimea has renewed concerns in Europe about the future of an energy mix that relies heavily on what decision-makers on the continent see as a capricious regime in Moscow. Russia is by far the single largest supplier of gas to continental Europe and Turkey, providing 30% of all gas consumed, and a cessation of its volumes would pulverize an already hard-pressed economic recovery. Across the pond in the US, liquefaction advocates have seized on the Crimean crisis to push regulators in Washington to expedite export approvals as a form of energy deterrence to Russia’s geopolitical gas weapon. But political wrangling has so far left European gas markets untouched (see related article above). For Ukraine, there is almost certainly going to be a move away from Russian gas and further deterioration in economic and diplomatic ties with its powerful neighbor. Although this will not be easy, it could mean a renewed push for a maiden LNG import scheme in the Black Sea. For others in the Baltic trying to reduce Russian gas dependence, the crisis underscores the importance of already fledgling import projects. Download here