Russians stop gas shipments to Europe

[Dinner]

Oerdin, what I was referring to is this:
http://en.wikipedia.org/wiki/District_heating

Then you're completely wrong about it not being used in America. From your own link:

Consolidated Edison of New York (Con Ed) operates Con Edison Steam Operations, the largest commercial district heating system in the world.

[VetLegion]

It is perhaps the largest steam system in the world. In Europe hot water is more commonly used. The largest system is probably somewhere in Russia

[Dr Strangelove]

The world market for natural gas is not nearly as developed as the one for oil. Gas is theoretically as fungible but in practice there are obstacles. For example tankers for it are very expensive and fewer. LNG terminals for offloading and storing the gas are tremendously expensive. Many supply contracts are long term so there is not much gas available on the market. Croatia learned that these days as we scrambled to buy some from producers in North Africa. It's virtually impossible.

Yes, NYMEX market prices probably aren't a good reflection of the "world market" for natural gas since the US domestically produces about 90% of it's own gas, and most of that is transported via pipelines. Obviously gas transported by pipeline isn't marketed the same way as gas transported by tanker or truck. As I said earlier when you consider the typically higher energy efficiency of gas the price Russia is asking for isn't so outlandish even though on a theoretical energy equivalence basis it's like asking for $ 75 for a barrel of oil.

[Dauphin]

Hmmm...
Here’s the loose formula to get the natural gas price: divide the oil price by six, then multiply the result by 35.3
[/i]

Why not just multiply by six? Or is that too loose?

[Dr Strangelove]

Why not just multiply by six? Or is that too loose?

....and you need to specify whether you're using 1000 m^3 or 1000 ft^3 as you're basic unit of gas. Some markets even use MMBTU, million british thermal units of gas as their basic unit of measurement.

[Xorbon]

Russia, Ukraine sign gas deal, end standoff

The Associated Press

January 19, 2009 at 11:21 AM EST

MOSCOW — Russia and Ukraine signed a deal Monday that restores natural gas shipments to Ukraine and paves the way for an end to the nearly two-week cutoff of most Russian gas to a freezing Europe.

The agreement was signed by the heads of Russia's state-run natural gas monopoly Gazprom and the Ukraine's gas company Naftogaz. The signing was witnessed by Russian Prime Minister Vladimir Putin and Ukrainian counterpart Yulia Tymoshenko.

Mr. Putin said Gazprom had received orders to resume shipments bound for Europe, which had been cut since Jan. 7 as Moscow and Kiev argued over 2009 gas prices and allegations that Ukraine was stealing gas destined for Europe.

Ukraine disputed this, claiming that Russia was not sending enough “technical gas” to push the rest further west.

Officials say the restored gas shipments could take up to 36 hours to cross Ukraine and reach European customers.

Europe gets about 20 per cent of its total gas needs from Russia via Ukrainian pipelines, and the cutoff hit hard at some countries, such as Bulgaria and Slovakia, that rely almost entirely on Russia for gas.

The confrontation has deeply shaken Europeans' trust in both Russia and Ukraine as reliable energy suppliers, as more than 15 nations have been forced to scramble for alternative sources of energy. The dispute was further complicated by geopolitical struggles over Ukraine's future and over lucrative export routes for the energy riches of the former Soviet Union.

Ms. Tymoshenko and Mr. Putin negotiated a preliminary deal for Ukraine to get gas with a 20 per cent discount from this year's average European price, which Russia says is $450 (U.S.) per 1,000 cubic metres. That would double the price Ukraine paid in 2008.

However, natural gas prices for Europe are expected to fall sharply later this year, due to the fall in oil prices. By midsummer, Ukraine could be paying as little as $150 for 1,000 cubic metres, said Ronald Smith, a strategist at Moscow's Alfa Bank.

Ukrainian Parliament Speaker Volodymyr Lytvyn said Monday, citing Naftogaz and Russian officials, that the average price Ukraine will pay this year will be around $240 to $250. He did not elaborate.

Russia won a key principle, however, that Ukraine must pay more for its energy supplies. Russia also won't have to pay higher transit prices to Ukraine to use its pipelines.

Mr. Putin said in 2010, Ukraine will have to pay full price for Russian gas, and Russia will pay market prices for transit.

In the long term, it is not clear how Ukraine will pay for the huge amount of Russian gas needed to run its outdated factories and heating systems.

Ukrainian opposition leader Viktor Yanukovych said any gas price higher than $250 would be mean a “collapse” of the economy, which is already coping with a collapse of the national currency, a drastic fall in exports and a shaken banking sector.

Full Story

And in other news, Ukrainian Prime Minister Yulia Tymoshenko is a total babe.



...and Happy Putin is as happy as I've ever seen him...

[DanS]

Milf

And in other news, Ukrainian Prime Minister Yulia Tymoshenko is a total babe.

Total MILF.

[Kuciwalker]

**** yeah

[TCO]

Check out Lili Pod:

http://triplefull.blogspot.com/2008/12/now-about-that-ukrainian-story.html

[onodera]

By the time file uploading was fixed, everyone forgot about the whole affair, andthis post is completely unnecessary. However, I don't want my mspaint efforts to go to waste, so here it is:
Green provinces go to Poland or Lithuania. You can go to war for them or manage them jointly or give them to Austria, I don't care.
Red provinces go to Russia, as we were the ones who took them from the Turks and Tatars.
Yellow provinces go to Yulia.

Saras, what's your opinion?

[Saras]

what a fvcking liability.

[Dinner]

Moldova is such a fake country. While we're at it lets get rid of it and give it back to Romania along with the part of the Ukraine the USSR stole from Romania in 1940.

[Lancer]

Lets get it done at the next Apostolic Palace meeting.

[Dinner]

There have been several reports that Putin, quite foolishly, signed several long term contracts to buy central Asian gas last year at the height of the price run ups. That's why he's now breaking his contracts with countries like the Ukraine and demanding 200%-300% price increases.

[Dinner]

Lets get it done at the next Apostolic Palace meeting.

While we're at it we can give Germany back it's eastern lands and Poland can have Belarus as compensation. They can keep Danzig as long as they rename it Danzig.