The USA threatens to bring down gas prices in Europe

The American companies are ready to construct free of charge in Europe floating terminals on acceptance of the liquefied natural gas to sign long-term contracts and to press "Gazprom" in the European market, the special envoy of the USA on energy questions Amos Hokhshtayn has said in interview to EurActiv.

According to him, there is already a construction of a floating terminal on storage and regasification of LNG at coast of Greece from where gas will be delivered to Bulgaria, Romania and Serbia. One more terminal will be built on the Croatian island of Krk and will serve the markets of Hungary, Slovenia and Ukraine.Unlike coastal terminals, floating cost "only several hundreds of millions of dollars". "And this year the companies will speak to the countries buyers: "We will give you the floating block free of charge if you agree to buy from us gas within five years" — Hokhshtayn has told.

According to him, the American LNG will become revolution for the gas market of Europe as will considerably change the rules of the game which have developed as result of a cold war.

"A half of Europe is covered by the integrated and free market of gas, and other half of Europe is connected by the pipeline with Russia. The uneven energy picture of Europe turns out. Look at a difference in the price which is paid today by consumers in Bulgaria or Hungary in comparison with German" — Hokhshtayn has explained.

So, for example, Lithuania for 100% depended on Gazprom, but when the LNG terminal has been constructed by it it was succeeded to achieve reduction of price of the Russian gas of 20%, the special envoy of the USA has told.

In the next 3-4 years on the European market the record flow of LNG — more than 180 billion cubic meters a year will rush, analysts of Fitch agree with Hokhshtayn: new its production plants will open not only in the USA, but also in Australia and Qatar, and the Asian market all new digest offer will not be able.

"Gazprom" has a choice — to reduce the prices or to lose a market share, consider in Fitch.

Spot gas prices in Europe are doomed to fall, analysts of Bank of America Merrill Lynch agree: actually the cost of gas will fall to coal cost — 3,8 dollars for one million British thermal units that approximately corresponds to a mark of 120 dollars for one thousand cubic meters.

It for 20% of the low prices of the Russian gas at the beginning of summer which have become minimum in 12 years.