British Govt Seeks Alternatives for Russian Natural Gas After Spy Scandal

The spy poisoning scandal in the U.K. is spilling into energy.

Prime Minister Theresa May responded to a chemical weapon attack against a former spy on British soil with a range of measures against Russia such as asset freezes and the biggest diplomatic expulsions since the Cold War. The U.K. will also look at getting natural gas from sources outside Russia.

While Europe as a whole gets about a third of its gas from Russia, that fraction is lower in the U.K., which gets the bulk of its fuel from North Sea fields and Norway. Britain buys some Russian gas through links with mainland Europe and has also been getting more by ship from a new liquefied natural gas plant in northern Siberia.

“The extent to which Russia uses its energy as a means to influence and have an impact on those countries that are in receipt of it and also the finances that it provides is an important one,” May said. “We will be continuing to discuss with the European Union not just our energy security but that wider energy security issue.”

Russia’s state-run Gazprom PJSC, which holds a monopoly on gas exports by pipeline, sold fuel to the U.K. worth $2.85 billion last year, according to data provided by the press office of Russia’s customs service. While the volume decreased 9.2 percent from a record in 2016, Gazprom sees sales rising this year after recent cold snaps.

Novatek PJSC contributed to U.K. supply this winter with LNG cargoes from Russia’s Arctic, where the company started a $27 billion plant in December. London is also home to Gazprom’s biggest energy trading unit. 

Full story

via The Global Warming Policy Forum (GWPF)

http://ift.tt/2tOgNy3

March 14, 2018 at 11:46AM

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