Russian Gazprom, Belgian Fluxys Sign LNG Cooperation Deal

Russian Gazprom, Belgian Fluxys Sign LNG Cooperation Deal

Russia’s gas giant Gazprom and Belgium’s Fluxys have signed a deal to cooperate on small-scale market of liquefied natural gas (LNG) in Europe, informed Reuters.

“The agreement reflects the intention of the parties to collaborate on joint projects for the construction and operation of LNG receiving terminals, LNG filling stations and LNG bunkering infrastructure in Europe,” Fluxys said in a statement

According to Marine Executive, market observers suggest that with American LNG exports now ramping up at Cheniere’s Sabine Pass facility in Louisiana, Gazprom faces new price competition in Europe, where it presently holds about one third of the natural gas market.

In addition to new infrastructure investments, analysts suggest that the Russian energy firm may soon engage in fierce price competition to retain its share of sales. Gazprom’s ability to control the gas supply has historically been a source of diplomatic leverage for Moscow, making market share important for reasons beyond revenue.

The Russian giant had signed a similar small-LNG framework agreement with Dutch firm Gasunie in early 2015.

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